26th Apr 2005 07:01
Telefonica SA25 April 2005 ANTONIO J. ALONSO UREBA Director, General Secretary and Secretary to the Board of Directors TELEFONICA, S.A. Telefonica S.A., as provided in article 82 of the Spanish Stock Market Act (Leydel Mercado de Valores), hereby reports the following SIGNIFICANT EVENT During the Fourth Investor Conference that is being hosted in Barcelona on April25th and 26th, the company has presented the strategy and business outlook forits subsidiary Telefonica Latinoamerica. In relation to the informationdisclosed in this presentation, special emphasis is placed on the communicationof the expected performance of this subsidiary for the period 2004-2008, basedon key financial indicators. These financial projections are as follows: TELEFONICA LATINOAMERICA GROUP 2004 Reported under IFRS (Euros CAGR (*) 2004-2008 in Million) (%) Revenues 6,748.4 +4%/+7% Operating Income Before D&A 3,294.9 +5%/+9% Operating Income 1,716.1 +11%/+16% OpCF (Operating Income Before D&A - CAPEX) 2,541.6 +5%/+9% CAPEX 753.3 +6%/+10% (*)CAGR stands for Compounded Annual Growth Rate. In terms of guidance calculation, Operating Income before D&A and OperatingIncome exclude other exceptional revenues/expenses not foreseeable in 2005-2008.These exceptionals amounted to 354.4 MM• in 2004 and are therefore alsoexcluded, meaning a calculation base for guidance of 2,940.5 MM• for OperatingIncome before D&A and 1,361.7 MM• for Operating Income, respectively. PersonnelRestructuring and Real Estate Programs are included as operating revenues/expenses. All projections refer to local currency, that is assuming constant exchangerates as of 2004, and exclude changes in consolidation, except the acquisitionof Atrium. Madrid, April 25th, 2005 This document contains statements that constitute forward looking statements ofthe Company or its management, including statements regarding the intent, beliefor current expectations of the customer base, estimates regarding future growthin the different business lines and the global business, market share, financialresults and other aspects of the activity and situation relating to the Company. Such forward looking statements are not guarantees of future performance andinvolve risks and uncertainties and actual results may differ materially fromthose in the forward looking statements as a result of various factors. Analysts and investors are cautioned not to place undue reliance on thoseforward looking statements which speak only as of the date of thiscommunication. Telefonica undertakes no obligation to release publicly theresults of any revisions to these forward looking statements which may be madeto reflect events and circumstances after the date of this communicationincluding without limitation changes in Telefonica's business or acquisitionstrategy or to reflect the occurrence of unanticipated events. Analysts andinvestors are encouraged to consult the Company's prospectus as well as periodicfilings made with the relevant financial regulatory authorities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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