Telefonica, S.A.
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Telefonica, S.A. Financial Snapshot
Operating Performance
Fast Facts
The company reported revenues of US$82,246.67
Headquarters Address Edificio Central Pl 2, Madrid, 28050,Spain
million during 2010, with a CAGR of 5.35% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 34914828548
3.22% over the previous fiscal year. In 2010, the
company recorded an operating margin of 26.71%, as
Fax + 34914828600 against 23.79% in 2009.
Website www.telefonica.com
Revenue and Margins
Ticker Symbol, Stock Exchange TEF, Mercado Continuo Espana
Number of Employees 285,106
Fiscal Year End December
Revenue (in US$ million) 82,246.67
Revenue (in EUR million) 61,685.00
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
41.58% for 2010, as compared to its peers, Portugal
Leading market position High Debt to Equity Ratio Telecom, SGPS, S.A. (Ticker: PTCA), TeliaSonera
AB (Ticker: TLSN) and Deutsche Telekom AG
(Ticker: DTE), which recorded ROEs of 129.14%,
Strong financial performance Weak liquidity position 16.88% and 4.46% respectively. The company
reported an operating margin of 26.71% in 2010.
Strong focus on research and
development
Return on Equity
Opportunities Threats
Agreement with Cellcrypt Dependence on suppliers
Growing mobile broadband market Fluctuations in foreign exchange rates
Strategic acquisition Industry consolidation
Liquidity Position
The company reported a current ratio of 0.63 in 2010,
as compared to its peers, Portugal Telecom, SGPS,
S.A., TeliaSonera AB and Deutsche Telekom AG,
which recorded current ratios of 3.30, 1.21 and 0.58
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$7,725.33 million, against US$10,688.00 million
current debt. The company reported a debt to equity
ratio of 2.50 in 2010 as compared to its peers,
Portugal Telecom, SGPS, S.A., TeliaSonera AB and
Deutsche Telekom AG, which recorded debt to equity
ratios of 1.64, 0.52 and 1.31 respectively.
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Telefonica, S.A. - SWOT Profile Page 1
Telefonica, S.A.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview .................................................................................................................................................5
1.2 Business Description ...............................................................................................................................................5
1.3 Major Products and Services ...................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................8
2.2 Key Financial Performance Indicators ...................................................................................................................11
2.2.1 Revenue and Operating Profit .......................................................................................................................11
2.2.2 Asset, Liabilities and Capex ..........................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ............................................................................................................................13
2.2.4 Solvency ........................................................................................................................................................14
2.2.5 Valuation ........................................................................................................................................................15
2.3 Competitive Benchmarking ....................................................................................................................................16
2.3.1 Market Capitalization .....................................................................................................................................16
2.3.2 Efficiency .......................................................................................................................................................17
2.3.3 Capital Expenditure .......................................................................................................................................18
2.3.4 Valuation ........................................................................................................................................................19
2.3.5 Turnover – Inventory and Asset ....................................................................................................................20
2.3.6 Liquidity ...............