Telefónica pay TV accesses exceed 2.3 million

Wednesday, May 13th, 2009 
Telefónica logo

MADRID — Telefónica (Madrid and NYSE: TEF) has released its first quarter 2009 results. Group revenue stood at 13,703 million euros in the first quarter of 2009, showing a solid 2.8% year-on-year growth in organic terms.

Pay TV accesses exceeded 2.3 million by the end of March, almost 25% more than a year ago. The Company has pay TV operations up and running in Spain, the Czech Republic, Peru, Chile, Colombia, Brazil and Venezuela.

Accesses (thousands):

                                                  2008       2009
            ------------------------------------------  ---------
                March       June  September   December      March
            ---------  ---------  ---------  ---------  ---------
Pay TV        1,881.6    2,028.0    2,158.1    2,267.5    2,347.7

Telefónica España (Spain)

Telefónica’s share of the pay TV market remained steady at an estimated 14% at the end of March 2009. The total number of Duo and Trio bundles stood at 4.6 million units. This means that more than 86% of the Company’s retail broadband accesses form part of a double or triple offer bundle.

Accesses (thousands):

                                                  2008       2009
            ------------------------------------------  ---------
                March       June  September   December      March
            ---------  ---------  ---------  ---------  ---------
Pay TV          554.0      576.6      589.6      612.5      604.8

Telefónica Latinoamérica

In the pay TV business, Telefónica Latinoamérica now has over 1.6 million customers (+30.2% year-on-year) after capturing 74,500 accesses in the first quarter of 2009.

Accesses (thousands):

                                                  2008       2009
            ------------------------------------------  ---------
                March       June  September   December      March
            ---------  ---------  ---------  ---------  ---------
Pay TV        1,240.4    1,353.6    1,460.5    1,540.5    1,615.1
 Brazil         282.3      346.9      426.1      472.2      502.4
 Chile          231.6      240.8      250.9      263.0      262.8
 Peru           633.4      653.2      646.0      654.5      680.9
 Colombia        93.0      112.6      137.5      142.3      145.6
 Venezuela        0.0        0.0        0.0        8.5       23.4

Telesp (Brazil)

Telesp ended the first quarter with 15.7 million accesses (+0.7% year-on-year). Broadband accesses grew 22.7% year-on-year, virtually in line with the increase recorded in 2008, to 2.7 million at the end of March, with net adds of 101,500 customers in the quarter (+3.5% year-on-year). Pay TV accesses grew 77.9% year-on-year to over half a million customers.

Telefónica Chile

At the end of March 2009 Telefónica Chile had 3.1 million accesses, 1.3% higher than the figure reported 12 months earlier. Telefónica achieved 10.0% year-on-year growth in broadband accesses to 713,000, with a stable market share. The number of pay TV accesses advanced 13.4% vs. March 2008 to almost 263,000.

Telefónica del Perú

At the end of March 2009 total accesses managed by Telefónica in Peru were 18.6% higher year-on-year, at over 15.2 million thanks to the significant growth of the wireless customer base (+23.6% year-on-year).

Also noteworthy were the 5.6% year-on-year rise in wireline accesses, the sustained growth in broadband (+21.0% year-on-year) to 719,006 accesses, and the advance in Pay TV accesses to 680,927 (+7.5% year-on-year).

Telefónica Telecom (Colombia)

At the end of March, Telefónica Telecom managed a total of 2.8 million accesses, up 3.4% year-on-year. This improvement was driven by an increase in broadband (+74.6% year-on-year) and TV (+56.5% year-on-year) accesses, with quarterly net adds of 22,151 and 3,275 accesses respectively.

Telefónica Venezuela

Operating cash flow (OIBDA-CapEx) increased by 45.7% in local currency vs. January-March 2008 to 407 million euros despite higher CapEx vs. the first quarter of 2008 (+59.8% in local currency) due to the rollout of the GSM and 3G network and satellite pay TV service.

Telefonica Europe

Telefónica O2 Czech Republic

Retail internet broadband accesses reached 617,283 (+17.0% year-on-year), with 33,585 net additions in the first quarter (1.8 times higher than in the same period of last year). The total number of O2 TV customers increased by 13,289 in the first quarter to reach 127,785 at the end of March.

Accesses (thousands):

                                                  2008       2009
            ------------------------------------------  ---------
                March       June  September   December      March
            ---------  ---------  ---------  ---------  ---------
Pay TV           87.2       97.9      108.1      114.5      127.8

More: Earnings Release