Telefonica | May 13, 2011 | Press Release
The Company’s commercial focus on higher-value customers led to an 6% increase in the customer base to 290 million accesses,  with significant improvements in the contract mobile segment and growth businesses
TELEFÓNICA’S REVENUES ROSE 10.8% IN THE FIRST QUARTER OF 2011 AND THE GROUP CONFIRMS FULL-YEAR GUIDANCE
In line with the Company’s  internal forecasts, OIBDA  stood at 5,574 million euros (+9%), operating income totalled 3,057 million euros (+4.3%) and consolidated net income amounted to 1,624 million euros (-1.9%). Operating cash flow amounted to  4,022 million euros (+2.5%), despite increased investment in transformation and growth projects
? Between January and March 2011 consolidated revenue increased to 15,435 million euros. Thanks to the Company’s successful diversification strategy, strong revenues in Latin America (+26%) and Europe (+8.4%) offset the performance in Spain (-5.6%). The mobile data business reinforces its status as a key growth driver (18.6% year-on-year in organic terms).
? Almost 71% of revenues and 64% of OIBDA are now generated outside Telefónica España thanks to the Group’s high degree of diversification
? Telefónica Group’s CapEx rose by over 30% in the first quarter of 2011 to 1,551 million euros. This  item grew  in all  regions, with a significant increase of 15.8% in Spain. 81% of the total Capex was directed to investments in the development of broadband services (fixed and mobile)
? Almost one third of the 223 million mobile accesses are contract (+14.2% year-on-year) and 12% are mobile broadband (26.5 million MBB accesses). Also, at the end of March Telefónica had 17.4 million retail fixed broadband Internet accesses and 2.9 million pay TV customers, up 9% and 10% respectively
? By country, highlights include the solid performance of the Company’s operations in Brazil, where revenue (+6.2% year-on-year organic) and  OIBDA (+11.9% year-on-year organic) growth accelerated. In Spain, the  Company continued its costs cutting efforts, resulting in a reduction in all operating expenses with the exception of personnel expenses, which advanced 3.2%
