7
Telefónica
(CATS: TEF)
Spain
Aggressive international expansion has made Spain's former phone monopoly one of the world's largest telecom companies, and also one of the most indebted. After taking a majority stake in Czech operator Cesky Telecom in 2005, early this year it wrapped up one of the biggest telecom acquisitions in history, spending $31 billion for British mobile operator O2. To help calm investor, Chief Executive Cesar Alierta Izuel has increased dividends and has promised to rein in spending until the end of 2007. Also reassuring for investors: The company delivered a 40% profit rise in 2005, to $5.7 billion, on revenues up 25%, to $48.6 billion.
Company Info |
|
| 2005 Rank | 16 |
| Sales* ($ Millions) | 48,642.9 |
| Sales Growth (over prev. year) |
25 % |
| Profits* ($ Millions) | 5,708.7 |
| Return on Equity | 34.9 % |
| Total Return on Sales (12-mo.) | 1.6 |
| Share Price As of 5/31/06 | 16.40 |
| CURRENT MARKET INFO | CATS: TEF |
| No. of Employees | |
| Industry | Telecommunications |
| COMPANY WEB SITE > | |
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Telefonica, a diversified telecommunications group, provides fixed-line telecommunications, broadband, and mobility solutions in Spain and Latin America. It offers fixed-line telecommunication services, including public switched telephone network lines; integrated services digital network access; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications services; corporate communications services; call waiting, call forwarding, voice and text messaging, voicemail services, and conference-call facilities; video telephony; network services; leasing and sale of terminal equipment; and telephony information service. The company also provides Internet and broadband multimedia services. In addition, it offers data and business solutions services, including leased lines; virtual private network services; fiber optics services; hosting and application service provider service, including Web hosting, managed hosting, content delivery and application, and security services; and outsourcing and consultancy services, including network management and desktop services, and system integration and professional services. Further, it provides wholesale services for telecommunication operators, including domestic interconnection services; international wholesale services; and other services. The company has strategic partnerships with China Netcom Group, Portugal Telecom, Mobipay, and Banco Bilbao Vizcaya Argentaria. Telefonica was founded in 1924 and is headquartered in Madrid.
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