IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
Untitled

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

Related Articles

Redback Shares Drag on Rumors

Safe Plays for an Uncertain Market

On the Move: Norsk Hydro, Mittal, Telefonica


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.


Data provided by Capital IQ
 
Cesar Alierta

Cesar Alierta

Chairman and Chief Executive Officer

Cesar Alierta Izuel has been chief executive officer and chairman of Telefonica since July, 2000. Alierta Izuel began his career in 1970 as general manager of the capital markets division at Banco Urquijo in Madrid. From June, 1996, until his appointment as chairman of Telefonica, he served as chairman of Tabacalera, which became Altadis after the merger with French tobacco company Seita. During his years as chairman of Tabacalera, Alierta Izuel served as chairman of the board of Logista, a subsidiary of Altadis. He served as chairman and founder of Beta Capital, which he combined with his post as chairman of the Spanish Financial Analysts' Assn. from 1991. He has been a director of Telefonica since January, 1997, and serves as a director of Telefonica Internacional, Plus Ultra, Terra, and Iberia and a member of the standing committee of the board of directors. He has been a non-executive director of O2 since January, 2006. He has been an independent director of Altadis since June, 1996, and is a member of the executive committee. He is a member of the board of directors and the standing committee of the Madrid Stock Exchange. Alierta Izuel holds a law degree from the University of Zaragoza and an MBA from Columbia University.



Executive Data provided by Capital IQ