At its annual shareholder meeting, 
Telefónica predicted that it will outperform its major international competitors in subscriber and financial metrics as it grows at an annual pace of between 1% to 4%. This includes outpacing France Telecom, Deutsche Telekom, BT, Vodafone and AT&T in terms of organic revenue growth, largely due to Telefónica’s operations in Latin America. Strategic alliances with China Unicom and Telecom Italia are also predicted to be drivers of new growth in the years ahead.
Some highlights from the first day of the event:
The total number of accesses (wired subscriber lines + mobile users) in all its markets is expected to rise from 287.6 million in 2010 to 340 million users by 2013.
Telefónica expects Latin America will grow faster than other regions.
The main pillars of growth will be mobile broadband (expected growth of 30-35%), fixed broadband (expected growth of 4-7%), Apps & OTT (expected growth of 20%), Capturing the remaining mobile and fixed voice opportunities (access and voice revenues expected to decline 1-3%).
Mobile broadband penetration was about 10% at the end of 2010 and is expected to reach about 30% by the end of 2013.
For fixed broadband, Telefónica will continue “massive” deployment of ADSL (under 25 Mbps) across the majority of its footprint, and selective deployment of ultra-broadband (over 25 Mbps) in selective regions.
The Group’s overall efficiency continues to improves. As measured by OPEX+CAPEX / Number of Accesses, efficiency improved by 8% from 2008 to 2010.
CAPEX will reach a cumulative 27 billion euros cumulatively over the 2011-2013 period.
The company aims to keep OPEX+CAPEX / Revenues at about 4%.
The company’s integrated backbone capacity increased 2.2X from 2008 to 2010.
More than 50% of the company’s mobile data traffic is video already.
Telefónica believes in tiered pricing for mobile data traffic, but will take steps to increase usage of mobile data, new services and applications. The tiered pricing may be specific service tariffs for applications (email, chat, social networking), buckets of MB or GB, speeds such as 2/7/14 Mbps, or time of day (MB used are divided in half during off peak hours). Tiered pricing is already being put in place in each market.
Telefónica is looking at both NFC and CDN mobile services.
By 2013, Telefónica expects to deploy a CDN spanning 35 countries.
The number of online payments that the company gets from its subscribers increased by 5X from 2008 to 2010.
The company bolstered its shareholder remuneration policy, confirming a payout of €1.75 per share in 2012 and a minimum annual dividend of €1.75 per share from 2012.
Telefónica expects an OIBDA margin at the upper 30s range, with limited erosion from 2010.
http://www.telefonica.com http://www.telefonica.com/ext/investor_conference/en/agenda_presentations.shtml
- In February 2011, Telefónica announced that its global revenues grew 7.1% in 2010 to 60,737 million euros (+9.9% in 4Q), driven by Latin America (+13.3%) and Europe (+12.7%) and the growing contribution of its mobile data business (close to 9,300 million euros, +19.3% year-on-year organic growth). The number of access lines (mobile and fixed) also grew by 7.2% and the company now has 287.6 million accesses worldwide. In 2010, the Company registered organic net adds of 19.2 million accesses. In Spain, despite the fierce competitive environment, net adds in the last year were six times the gains registered in 2009 in comparable terms.
Mobile accesses at the Telefónica Group stood at 220.2 million at the end of 2010, a year-on-year growth of 8.9% (both in organic and reported terms). Organic net additions reached 18.2 million in 2010 (1.3 times those recorded in 2009).
