Telefónica posts a 43% increase in net profit to a record 8,906 million euros

Thursday, February 28th, 2008

MADRID — Telefonica has once again presented record key financial figures. Results for 2007 consolidates the company’s differential profile within the industry underpinned by its ability to act and to consistently meet its financial targets.

Pay TV accesses at the end of the quarter exceeded 1.7 million, 64.3% more than in 2006, with operations up and running in Spain, the Czech Republic, Peru, Chile, Colombia and Brazil.

Telefónica España

Telefonica continues to spearhead the development of the pay TV market in Spain, achieving an estimated market share below 13% (10% by December end 2006) after adding 42,020 new customers in the fourth quarter. As a result its customer base had risen to 511,087 by the end of December 2007.

Telefónica Latinoamérica

Telefónica Latinoamérica now has close to 1.2 million pay TV customers, with operations in Peru, Chile (+133.4% to 220,000), Colombia and, since the third quarter of 2007, Brazil, where Telesp’s satellite TV licence was complemented in the fourth quarter of 2007 with the incorporation of TVA .

Telefónica Telecom in Colombia had 72,930 TV customers at the end of December 2007.

Telefónica O2 Europe

In the Czech Republic, the total number of O2 TV’s customers increased to 73,000 at the end of 2007, representing 20,000 net adds in the fourth quarter, up from 16,000 in the previous quarter.