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Telefonica | February 25, 2011 | Press Release
At its General Shareholders’ Meeting, Telefónica will propose a 14.3% dividend increase for 2011, to €1.60/share, in line with the policy of increasing shareholder remuneration. The Group has set targets for 2011 with the aim of capturing growth in a profitable manner, and expects revenue growth up to 2%, an OIBDA margin in the upper 30s, with a limited erosion year-on-year, and CapEx of approximately 9 Billion euro
At its General Shareholders’ Meeting, Telefónica will propose a 14.3% dividend increase for 2011, to €1.60/share, in line with the policy of increasing shareholder remuneration. The Group has set targets for 2011 with the aim of capturing growth in a profitable manner, and expects revenue growth up to 2%, an OIBDA margin in the upper 30s, with a limited erosion year-on-year, and CapEx of approximately 9 Billion euro.
- Solid growth: Consolidated revenues grew 7.1% in 2010 to 60,737 million euros (+9.9% in 4Q), driven by a solid performance in this item in Latin America (+13.3%) and Europe (+12.7%) and the growing contribution of the mobile data business (close to 9,300 million euros, +19.3% year-on-year organic growth).
- High degree of diversification: Telefónica Latinoamérica and Telefónica Europe represent 68% of the Group’s consolidated revenue and generate over 60% of consolidated OIBDA.
- Boosting commercial strategy: Telefónica has 287.6 million accesses worldwide, and posted growth in this item of 7.2% year-on-year organic. 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.
- Strategy focused on value-added customers: In 2010, 53% of organic growth in net adds of mobile clients were in the contract segment, which represents 31% of the Group’s over 220 million accesses. Telefónica already has 22.2 million mobile broadband clients (+63.9%), and 17.1 million retail fixed broadband internet accesses (+27%). In addition, as a result of the Group’s bundling strategy, 89% of the retail fixed broadband accesses in Spain, and 86% of broadband accesses in Latin America form part of a duo or trio package.
- A leader in operating efficiency: At the close of 2010, OIBDA stood at 25,777 million euros, with year-on-year growth of 14% and anOIBDA margin of 42.4%. Operating cash flow stood at 14,933 million euros for the year.
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