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Posted by on Nov 8, 2012 in Economy and Business |

Movistar presents its financial results for 2012

Movistar presents its financial results for 2012

Movistar has presented its financial results to the National Securities Market for so far in 2012 through September. They confirm the continuation of the recovery process of the company that started in 2011, further increasing its net profit by 26.4% over the same period of 2011.

Until September, the of in 2012 amounted to 3.455 million euros, thanks to the 314 million customers who have the operator worldwide. This profit figure represents a significant increase when compared to 2011, and as said Cesar Alierta, president of the company, has some clues for this, especially considering that the turnover has been reduced in 0.3% one. Nevertheless, we have obtained more benefits over time.

  • Retrenchment: Movistar itself highlighted as a key factor in its presentation. In global computations, reducing the company expenditure was 5.4% compared with the figure of a year ago. The third quarter of 2012 this trend was accelerated, reaching up to 21.1% reduced.
  • Spain: It moves in two aspects. On the one hand, income Movistar bring to 11,364,000 euros, 12.9% less than a year ago. On the other hand, the bulk of investment in infrastructure of the company have been destined for this country, which would signal confidence in this market as well and all of the very difficult situation.
  • Abandonment of phone subsidy model: Especially notable in Spain, which along with Britain was the country where this was implemented turnaround in the second quarter. Spain has entrenched culture of free phone in exchange for linking to a permanent contract, more than in the British case. In a move initiated by Movistar, and quickly joined Vodafone, have stopped subsidizing phones, changing the existing model to date. Also, on time and have been returning Coupon at times this type of sale.
  • Latin America: Is the market niche that has grown, and is now the most profitable is giving the operator. Nothing more and nothing less than 49% of their revenues come from the Latin American market, which this year has surpassed 2012 for the first time in its history the European growing by 5’9% compared to 2011.
  • Fusion Movistar: One of the most important developments in recent times for Movistar undoubtedly made in September, and surely will influence upcoming shows of the company’s economic performance. In just over a month, the company has already managed to attract 430,000 customers with its ambitious offering that integrates television, fixed, mobile and ADSL at a tempting price.
  • New investments: Before we mentioned that Spain takes a good percentage of investments in new infrastructure. These would be high-speed networks and broadband, both fixed line and mobile, and that Spain would have left only 5.699 million euros in the first nine months of the year.
  • Clients: Luckily for Alierta company, has finally gotten downtrend stop wearing vacuum in terms of loss of customers, especially landlines. The emergence of economic alternatives and the full implementation of the mobile phone lost him (in the form of low or portability) alarming numbers of customers. This trend has slowed considerably, and hopefully even improve the numbers by Fusion.

In short, this has been a good year for Movistar, and expectations are to continue improving and increasing their profits. Different Fusion Movistar packs have given some great successes in the very short term to allow the operator a foothold in their plans and continue investments to improve their networks. And above all, confirm to Latin America as a growing area to consider.

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