TDE.L Regulatory News (TDE)

21 Feb 2008 16:52

Telefonica O2 Czech Republic, A.S.21 February 2008 Press release Telefonica O2 Czech Republic - 2007 Full Year Financial Results Prague, 22nd February 2008 Telefonica O2 Czech Republic, a.s. is pleased to announce its audited financialresults for the fiscal year 2007. These results are consolidated and preparedaccording to International Financial Reporting Standards and fully include theSlovak operation. "I am pleased that the group's results for 2007 confirmed the turnaround intrends seen already in 2006. Growth of consolidated revenues continued to bedriven by improving performance of the fixed line segment and a solid growth ofmobile operation in the Czech Republic. Presented results proved that ourstrategy to focus on growth areas as broadband, ICT and convergent services andtogether with the expansion in Slovakia was successful. At the same time, thegroup managed to maintain its efficiency in operational and capitalexpenditures, while absorbing the negative impact of Slovak startup. Thisresulted in OIBDA margin well above the average compared to peers in CEE region.These results are fully in line with our targets communicated at the beginningof the year and allow the Board of Directors to propose a dividend payment ofCZK 50 per share. ," said Salvador Anglada, Chief Executive Officer and Chairmanof the Board of Directors of Telefonica O2 Czech Republic, when commenting onthe operator's financial results. FY 2007 and 4Q 2007 Group Highlights(1) 2007 FY 4Q 2007Revenues CZK 63 bn. (+ 2.8%) CZK 15.9 bn. (+ 1.4%)OIBDA CZK 28 bn. (+ 0.5%) CZK 6.6 bn. (+ 14.7%)OIBDA margin 44.8% (- 1.0 p.p.) 41.7% (+ 4.8 p.p.)Operating income CZK 13.6 bn. (+ 21.8%) CZK 3 bn. (+ 85.6%)Net Income CZK 10.4 bn. (+ 29.5%) CZK 2.8 bn. (+ 138%)Net gearing -0.4% (- 2.5 p.p.)(2)CAPEX CZK 7.8 bn. (+ 20.1%) CZK 3.2 bn. (+ 29.4%)CAPEX/Revenues 12.4% 20%Group Headcount 9,221 (- 2.1%)CZ mobile customers 5,126 ths. (+ 5.4%)- of which contract 2,244 ths. (+ 19.7%)ADSL accesses 570 ths. (+ 21.3%)O2 TV customers 73 ths.Fixed telephony accesses 2,069 ths. (- 13.9%) > 5% market share in Slovakia at 2007 year end 2007 actual performance on upper range of 2006 guidance base 2008 guidance - Revenue(3) growth of 2% to 4%, OIBDA(4) growth of 0% to 2%,CAPEX around CZK 9 billion, including Slovakia 2007 dividend of CZK 50 per share to be proposed to the AGM Consolidated Financial Statements Revenues, operating costs and OIBDA Consolidated revenues (business and recurring revenues) reached CZK 63 billionin 2007, up 2.8% yoy and CZK 15.9 billion in 4Q alone, up 1.4% yoy, whileconsolidated business revenues grew 2.6% yoy to CZK 62.5 billion in 2007 and1.5% yoy in 4Q 2007 to CZK 15.8 billion. In line with the previous threequarters of the year, the domestic mobile business was the key driver of thisgrowth. Business revenues in the domestic fixed segment were flat in 2007compared to 2006, confirming the trend seen from the beginning of the year. Thecontribution of the Slovak operation to consolidated revenues was still notmaterial in 4Q 2007. Reported 2.8% growth of consolidated revenues was on theupper range of guidance for 2007 (1% - 3% revenues growth). Total consolidatedoperating costs reached CZK 35.7 billion in 2007, up by 4.7% yoy, whiledecreasing 5.4% yoy to CZK 9.5 billion in 4Q alone. Re-branding costs and staffrestructuring costs incurred in 4Q 2006 were the main reasons for OPEXyear-over-year decline in 4Q 2007. Consolidated OIBDA thus amounted to CZK 28billion in 2007, up by 0.5% yoy, while OIBDA in 4Q reached CZK 6.6 billion, up14.7% yoy. OIBDA margin (OIBDA over Business revenues) reached 44.8% in 2007 and41.7% in 4Q 2007, compared to 45.8% and 36.9% in the comparable periods of 2006.Despite the decrease in Group OIBDA margin in 2007, largely due to dilution ofSlovak operation (approx. 2 p.p. in 2007), it still remains in high level.Moreover, Telefonica O2 Czech Republic group met its financial target for OIBDA(5), which decreased 0.4% yoy in 2007, in the middle of the narrow rangecommunicated (-1% - 0%). Depreciation and Amortization Consolidated depreciation and amortization amounted to CZK 14.4 billion in 2007,a decline of 13.8% yoy. Operating Income, Income before tax and Net income Consolidated operating income and consolidated income before tax went up by21.8% yoy and 23.5% yoy to reach CZK 13.6 billion and CZK 13.5 billionrespectively in 2007, on the back of the decrease in consolidated depreciationand amortization and low amount of financial expenses. Consolidated net incomeamounted to CZK 10.4 billion and CZK 2.8 billion, up by 29.5% yoy and 138% yoyin 2007 and 4Q alone. Decrease in deferred tax expense resulting from lowerincome tax rates in 2008 to 2010 positively affected income tax expense in4Q 2007. CAPEX Total consolidated CAPEX amounted to CZK 7.8 billion in 2007, up 20.1% yoydriven mainly by CAPEX related to start up in Slovakia. CAPEX in the CzechRepublic was largely related to increasing the capacity and coverage of the GSMnetwork, ADSL and IPTV rollout, fixed access network improvement and informationsystems upgrade. CAPEX in Slovakia was spent to GSM network rollout and systemsdeployment (billing, collection, call center, etc.). Despite the 20.1% growth inCAPEX in 2007 compared to 2006, the actual CAPEX amount of CZK 7.8 billion waswell below the original target from the beginning of the year of around CZK 9billion, but also below the guidance updated in 3Q 2007 (5 to 10% below CZK 9billion). This confirms the Group's effort to focus on efficient CAPEX spendinginto the growth areas. Free Cash Flows In 2007, the Group confirmed its ability to generate strong free cash flow. Thetotal amount of the Groups' free cash flows amounted to CZK 18.3 billion in2007, down by 0.7% yoy. Operating cash flows went down 2.3% yoy to CZK 23.9billion due to negative impact of lower D&A non-cash adjustment and higher taxpaid that was partly offset by working capital improvement, while net cash usedin investing activities decreased 5.7% yoy to CZK 5.6 billion. Cash and Debt levels The group's consolidated financial debt (long-term and short-term) amounted toCZK 9.3 billion on 31 December 2007, down by 1% compared to the end of December2006. The amount of cash and cash equivalents and short term financialinvestments reached CZK 9.6 billion at 2007 year end. This resulted in netleverage of minus 0.4% and gross leverage of 11.2% compared to 2.1% and 10.6% at31 December 2006. Czech Republic Overview The Company's activities in the last quarter of 2007 continued to focus on newand enhanced products and services in the growth areas. These include broadband,IPTV and data services, IT and comprehensive customer solutions in the fixedsegment. In the mobile segment Telefonica O2 continued to focus on improving ofthe attractiveness of voice packages with the aim of increasing voice traffic.The company also focused on marketing of its portfolio of mobile data serviceswhich enable 100% availability of data connection within a single tariffindependent of technologies. In addition, the Company continued to encourageprepaid to contract migration with the aim of developing the ARPU potential ofthese customers. CZ Mobile Segment Overview(6) (7) Total business revenues in the mobile segment increased by 4.4% yoy and 1.7% yoyin 2007 and 4Q 2007 alone and amounted to CZK 32.6 billion and CZK 8.3 billionrespectively. Revenues from voice services (monthly fees, traffic and interconnection)increased in total by 4.9% yoy to CZK 24.3 billion in 2007. The total number of registered mobile customers increased by 5.4% yoy to 5,126thousand at the end of December 2007. The total number of contract customersreached 2,244 thousand, up by 369 thousand yoy, representing 19.7% growthfollowing the active prepaid to contract migration strategy. Contract customers'net adds amounted to 83 thousand in 4Q 2007. Contract customers accounted for43.8% of the total customer base at the end of 2007, up from 38.5% at the end of2006. The number of prepaid registered customers decreased by 108 thousand yoy (3.6%yoy) to 2,882 thousand at the end of 2007, while it increased by 76 thousand in4Q 2007 alone. Under the methodology, which defines a prepaid customer asgenerating revenue in the last 3 months, the number of mobile active prepaidcustomers amounted to 2,536 thousand at 31 December 2007, down by 3.9% yoy. The blended monthly average churn rate reached 1.5% in 2007, the same as in2006, while it went up to 1.5% in 4Q 2007 alone from 1.4% in 4Q 2006. Revenues from monthly fees increased by 10.9% yoy to CZK 7.1 billion in 2007 andby 11% to CZK 1.9 billion in 4Q alone, mainly as a result of the 19.7% yoygrowth in the contract customer base. Traffic revenues increased by 3.5% yoy to CZK 11.9 billion in 2007, on the backof 21.7% growth in outgoing traffic volumes. Average MOU per subscriber improvedto 117 minutes in 2007, up 14.7% yoy, mainly due to the growing number ofcontract customers generating higher average traffic per customer andattractiveness of tariffs designed to stimulate traffic which were well acceptedamong the customers. Average MOU reached 122 minutes in 4Q 2007 alone up from109 in 4Q06. Interconnection revenues amounted to CZK 5.3 billion in 2007, up by 0.6% yoy.Excluding the impact of the reclassification, this category of revenues wouldincrease 0.2% yoy. In 2007, blended monthly ARPU(8) reached CZK 524, up from CZK 511 in 2006 (+2.5%yoy), while it reached CZK 540 in 4Q 2007 alone compared to CZK 528 in 4Q 2006.Contract monthly ARPU reached CZK 907 in 2007, compared to CZK 989 in 2006 (-8.3% yoy) and CZK 906 in 4Q 2007 (CZK 982 in 3Q 2006). The main reason for thelower contract ARPU is the dilution caused by customer migration from theprepaid to the contract segment. Prepaid monthly ARPU increased by 3.3% yoy toCZK 247 in 2007 (CZK 255 and CZK 248 in 4Q 2007 and 4Q 2006 respectively). Total revenues from value added services (including SMS, MMS and content)increased by 3.6% yoy to CZK 4.6 billion as a result of the growing volume ofSMS and MMS messages. In 2007, O2 customers sent and received in total 3,082million SMS, up by 7.8% yoy. Revenues from Internet and Data recorded a 15.6% yoy increase and reached CZK 2billion. The total number of data customers (GPRS and CDMA) increased by 14.3%to 192 thousand at 31 December 2007. Data ARPU improved by 2.8% yoy to CZK 111in 2007. Non-SMS data ARPU represented 43% of total data ARPU in 2007 comparedto 41% in 2006 as a result of the growth in CDMA and GPRS customers. Data ARPUas % of blended ARPU remained stable in 2007 compared to 2006 at about 21%. Equipment sales (including connection fees) decreased by 1.9% yoy in 2007 to CZK1.5 billion. Other business revenues decreased by 48.2% yoy to CZK 157 million. CZ Fixed Segment Overview(9) (10) Total business revenues in the fixed line segment went down by 0.2% to CZK 29.6billion in 2007 and by 1.1% yoy to CZK 7.3 billion in 4Q alone, driven by thehealthy growth of revenues from broadband Internet based services, value addedservices and IT services, which in total almost offset declines in traditionalvoice revenues. Revenues from broadband, data and other value addedtelecommunication services accounted for 28.6% of business revenues in 2007compared to 25.9% in 2006. Revenues from traditional access decreased by 8.4% yoy to CZK 9.6 billion in2007 and by 11.4% in 4Q 2007 alone. The total number of fixed telephony accessesamounted to 2,069 thousand at the end of 2007, down by 13.9% yoy mainly as theresult of the strong fixed to mobile substitution effect. However, the declinein fixed telephony accesses decelerated during 2007. The net losses decreased to66 thousand in 4Q 2007 from 114 thousand in 1Q 2007, 81 thousand in Q2 2007, 72thousand in Q3 2007 and 135 thousand in 4Q 2006. This is a result of improvingthe number of gross adds and lower number of disconnections following theCompany's effort to enhance the quality of fixed lines via broadband and bundledoffers. Total number of customers subscribed for one of the bundled products (O2Duo, O2 Trio, O2 Duo Mobil a O2 Internet Komplet) reached close to 100 thousandat the end of 2007. Revenues from traditional voice services (voice traffic and interconnection)declined in total by 6.0% to CZK 9.1 billion in 2007 and only 0.4% yoy in 4Q2007 to CZK 2.3 billion. Revenues from voice traffic declined by 17.1% yoy toCZK 4.6 billion in 2007 and by 7% to CZK 1.1 billion in 4Q alone, as a result oflower voice traffic generated by our customers, which decreased at the same timeby 19% yoy to 2,702 million minutes. Interconnection revenues went up 8.7% yoy in 2007 and amounted to CZK 4.6billion driven by higher international transit traffic and an increase in thenumber of LLU. Excluding the impact of the reclassification, this category ofrevenues would increase 8.8% yoy. Revenues from Internet & broadband increased in total by 16.6% yoy to CZK 3.9billion in 2007 (by 13.8% to CZK 1 billion in 4Q 2007) as a result of 34.3%growth in revenues from broadband based services which more than offsetdecreasing revenues from narrowband, confirming the company's successfulstrategy to focus on ADSL and IPTV based services and premium content. Revenues from broadband services (ADSL, IPTV and content) amounted to CZK 3.7billion in 2007, up by 34.3% yoy. Of this, CZK 3.3 billion represented revenuesfrom retail broadband (up 40.3% yoy) and CZK 391 million from wholesale ADSLservices (down 1.2% yoy). The total number of ADSL accesses (retail andwholesale) reached 570 thousand at 31 December 2007, compared to 470 thousand ayear ago (up 21.3% yoy). The total number of O2 TV's customers increased to 73thousand at the end of 2007, representing 20 thousand net adds in 4Q 2007, upfrom 16 thousand in 3Q 2007. The successful take up of bundled products is themain driver for O2 TV net additions improvement in 4Q. Revenues from data services decreased by 6.2% yoy to CZK 3.9 billion, mainly dueto a 12% decline in revenues from leased lines, while revenues from data networkservices increased by 1.1% yoy as a result of the growth of IP Connect and IPVPN connections. Revenues from IT services and business solutions reached CZK 1.7 billion in2007, 2.9 times higher than in 2006, as a result of growing activities in ICTand IT services for large corporate customers and Government. Equipment salesamounted to CZK 462 million, down by 22.1% yoy due to the lower number of unitssold and special discount offers. Slovakia In line with the previous quarters, also in 4Q 2007 Telefonica O2 Slovakiasuccessfully continued in setting its footprint on the Slovak market. The keyactivities focused on marketing of company's recently introduced postpaid offer,customer care enhancement and promotion of attractive prepaid tariffs with theaim to further expand the customer base and improve the customer mix via focuson postpaid customer acquisition. This leads to higher customer activity interms of network usage with a positive impact on ARPU and financial performance.By the end of 2007, the total number of mobile registered customers in Slovakiawas 565 thousand, of which majority is still represented by prepaid customers.Although some of the SIM cards are used as second or third SIM, the market shareof active customers is more than 5%. Thus, the company overachieved its targetset at the beginning of 2007. Also in 4Q 2007, Telefonica O2 Slovakia continuedto focus on further roll-out of its own network, which will allow for thegradual migration of the traffic from national roaming with positive impact onmargins. By the end of 4Q, the company had in operation some 550 BTS, resultingin above 60% of the traffic captured by its network. The sales network comprisedof 14 own brand stores, 16 franchises and about 3,500 point of sales at the endof 2007. Group Operating Expenses Total Group operating costs (including the Slovak operation) amounted to CZK35.7 billion in 2007, up by 4.7% yoy, with a 5.4% decrease to CZK 9.5 billion in4Q 2007 alone. As it was mentioned, decline in OPEX in 4Q 2007 compared to thesame period of 2006 was to large extent driven by re-branding costs and staffrestructuring cost incurred in 4Q 2006. Supplies expenses grew by 10.9% yoy to CZK 17.1 billion in 2007 (+8.6% to CZK4.5 billion in 4Q alone). Interconnection costs increased by 10.0% yoy to CZK 11billion in 2007 (+14.4% to CZK 2.8 billion in 4Q alone) due to interconnectioncharges recorded in Slovakia, higher activities in transit business and growthin mobile traffic generated by customers in the Czech Republic. Cost of goodssold went up by 14.1% yoy to CZK 3.5 billion as a result of increased costs inSlovakia, while costs in the Czech Republic grew slightly. Other suppliesincreased by 10.4% to CZK 2.6 billion in 2007 due to increased sub-deliveriesfor ICT related projects, while this OPEX category decreased 19.4% yoy to CZK562 million in 4Q alone. Personnel costs, including headcount reduction costs, amounted to CZK 7.1billion in 2007, almost the same amount as in 2006, however in 4Q 2007 alone,personnel costs went down 3.3% due to staff restructuring costs incurred in 4Q2006. The total number of Group employees reached 9,221 at 31 December 2007,down 5.9% yoy. Telefonica O2 Czech Republic headcount went down by 6.2% yoy to8,695. The cost of external services increased in total by 3.7% yoy and reached CZK10.9 billion in 2007, while they decreased 13.3% yoy to CZK 3.1 billion in 4Qalone. Marketing and sales in total went up by 14.0% yoy to CZK 3.6 billion dueto marketing activities in Slovakia and increased sales expenses driven by adifferent sales channels mix. In the Czech Republic, marketing costs went downas a result of marketing activities related to re-branding in 2H 2006. Network &IT repairs and maintenance increased by 0.3% yoy to CZK 2.6 billion in 2007(down 17.5% yoy to CZK 622 million in 4Q). Rentals, buildings and vehicles costsreached CZK 1.9 billion, up by 14.8% yoy while utilities supplies increased by8.2% yoy to CZK 807 million on the back of price increase. Other externalservices including consultancy fees, call centers and other external serviceswent down 15.2% yoy to CZK 2 billion in 2007 and down 46% to CZK 569 million in4Q alone due lower consultancy costs in 2007 and re-branding costs incurred in4Q 2006. Taxes, comprising taxes other than income tax, fees and provisions decreased by44.4% yoy to CZK 600 million mainly as a result of lower bad debt provisions in2007 and higher inventory provision charged in 4Q 2006. Outlook for 2008 In 2008, the Company's activities will continue to address the current trendsand customers' needs in the highly competitive Czech telecommunication market,specifically in the areas of broadband, data, value added and ICT services andconvergent products. At the same time, the Company will maintain a focus onrevenue retention in traditional voice services in the both fixed and mobilesegments. In the fixed line business the Company's effort will focus on consolidation ofpast year performance. Similarly to 2007, slow down of the fixed linescancellation rate remains among the top priorities also in 2008. The Companybelieves continuing enhancement of ADSL and IPTV value proposition will furtherincrease the value of the fixed line proposition and eventually reduce churn.Broadband services will be the fundamental product of the bundles with the mainfocus on value proposition accompanied by quality of service, coverage expansionand on further customer care improvements. The Company will also continue toroll out its IPTV service, improve the provisioning and customer care andincrease the attractiveness of the product. We see strong potential in the areaof IT and integrated customer solutions primarily for corporate and governmentcustomers, where the Company will continue to focus its efforts in 2008. Theacquisition of 100% stake in Deltax Systems, one of the most prominent Czechproviders of ICT solutions in the Czech Republic, will further strengthen theCompany's position on the fast growing ICT market. The strategy in the mobilesegment continues to focus on ARPU sustainment via onward prepaid to postpaidmigration and growing non-SMS mobile data and Internet revenues throughbroadband based services. The Company will continue to support the gradual deployment of the Slovakoperation including the development of systems, processes and network rollout toachieve a quality and customer experience equal to O2 in the Czech Republicwhile applying a cost conscious approach. Activities in Slovakia will primarilyfocus on the improvement of customer mix via increasing proportion of postpaidcustomers and acquisition of new ones with the aim to increase their activity. The key strategic effort of the management is to further increase its positionon the whole broadband market and also pay TV market in a highly competitive andchanging Czech telecommunication market. The main aspects of financialmanagement of the Telefonica O2 Czech Republic Group will remain focused onprofitable growth, efficient CAPEX levels and strong free cash flows. In 2008 we expect Group revenues(11) to grow by 2 to 4% and OIBDA(12) to grow 0%to 2% compared to 2007. CAPEX is expected to be around CZK 9 billion in total.In addition, the Group reiterates its medium term guidance for 2007 - 2010communicated in February 2007. The Board of Directors of Telefonica O2 Czech Republic intends to propose at theAnnual General Meeting which is to be held at the end of April 2008 a dividendpayment of CZK 50 per share, i.e. a total dividend amount of CZK 16,104 million.This proposal is based on the Company's intention not to hold surplus cashbalances in the current environment and is consistent with its investmentstrategy to lock its investments into the growing areas (broadband, mobile,business services and Slovakia). Attachment: The consolidated balance sheet and income statement of Telefonica O2 CzechRepublic prepared in accordance with International Financial ReportingStandards. Contact for further information:MARTIN ZABKASpokespersontel: + 420 271 463 359e-mail: public.relations.cz@o2.com http://www.cz.o2.com/ About Telefonica O2 Czech Republic Telefonica O2 Czech Republic, a.s., is the first integrated operator in theCzech Republic formed on 1 July 2006 by the merger of the leading fixed lineoperator, CESKY TELECOM, a.s., and the strongest mobile operator, Eurotel Praha,spol. s r.o., into a single telecommunications organization. The organization isnow operating more than seven million lines, both fixed and mobile, making itone of the world's leading providers of fully converged services. Telefonica O2 Czech Republic offers the most comprehensive portfolio of voiceand data services in this country. A special attention is paid to theexploitation of the growth potential, in particular the data and Internetbusiness. Telefonica O2 Czech Republic operates the largest fixed and mobilenetwork including a 3rd generation network, CDMA (for data) and UMTS, enablingthe transport of voice, data and video. Furthermore, Telefonica O2 CzechRepublic offers the largest network of WiFi hotspots in the country. About Telefonica O2 Europe Telefonica O2 Europe comprises mobile network operators in the UK, Ireland andSlovakia, along with integrated fixed/mobile businesses in Germany and the CzechRepublic - all of which use 'O2' as their consumer brand. Telefonica O2 Europealso owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businessesin the UK and Germany respectively as well as having 100% ownership of Be, aleading UK fixed broadband provider. In addition, the group includes the Isleof Man fixed/mobile operator, Manx Telecom. Telefonica O2 Europe, part of the Telefonica group, is headquartered in Slough,UK, and has more than 40 million mobile and fixed customers. About Telefonica Telefonica is one of the largest telecommunications companies in the world interms of market capitalisation. Its activities are centred mainly on fixed andmobile telephony, with broadband as the key tool for the development of both. The company has a significant presence in 23 countries and a customer base of218 million worldwide. Telefonica is a 100% listed company, with in excess of 1.5 million directshareholders. Its share capital currently comprises 4,921,130,397 ordinaryshares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao andValencia) and on those in London, Paris, Frankfurt, Tokyo, New York, Lima,Buenos Aires and Sao Paulo. Attachment: Consolidated balance sheet and income statement of Telefonica O2 Czech Republicunder International Financial Reporting Standards. All figures in CZK million. INCOME STATEMENT Jan - Dec 2007 Jan - Dec 2006Revenues 63,033 61,311Internal expenses capitalized in fixed assets 553 911Operating expenses (35,707) (34,100)Other operating expenses 117 (61)Gain on sale of fixed assets 42 98Impairment of fixed assets (5) (253)OIBDA 28,033 27,906 Depreciation and amortization (14,435) (16,746)Operating Income 13,598 11,160 Net financial income (expense) (88) (220) Income before tax 13,510 10,940Income tax (3,124) (2,920) Net Income 10,386 8,020 BALANCE SHEET 31.12.2007 31.12.2006Non-current assets 94,191 100,824 - Intangible assets 8,485 8,308 - Goodwill 13,320 13,320 - Property, plant and equipment and investment property 71,809 78,755 - Long-term financial assets and other non-current assets 577 415 - Deferred tax assets 0 26 Current assets 19,033 16,850 - Inventories 853 987 - Trade and other receivables 8,548 8,336 - Current tax receivable 8 0 - Short-term financial investments 48 66 - Cash and cash equivalents 9,576 7,461 Non-current assets classified as held for sale 328 203 Total assets 113,552 117,877Equity 82,792 88,481 Non-current Liabilities 9,017 16,495 - Long-term financial debt 3,062 9,159 - Deferred tax liabilities 3,353 4,495 - Long/Term Provisions 2,150 2,037 - Other long/term liabilities 452 807 Current Liabilities 21,743 12,901 - Short-term financial debt 6,207 207 - Trade and Other payables 11,080 7,849 - Current tax payable 870 730 - Short-term provisions and other liabilities 3,586 4,115 Liabilities associated with non-current assets classified as held for 0sale Total Equity and Liabilities 113,552 117,877 -------------------------- (1) Comparative period 12 months and 3 months to 31 December 2006 respectively (2) Long and short term financial debt less cash and cash equivalents and short-term fin. investments over equity (3) In terms of 2008 guidance calculation, Revenues represent business revenues only (4) In terms of guidance calculation, OIBDA excludes other exceptional revenues/expenses not foreseeable in 2008. For comparison purpose, the equivalent other exceptional revenues/expenses registered in 2007 are also deducted from reported figures (the only unforeseeable expense deducted from 2007 OIBDA was the impairment charge). (5) In terms of guidance calculation, OIBDA excludes other exceptional revenues/expenses not foreseeable in 2007. For comparison purpose, the equivalent other exceptional revenues/expenses registered in 2006 are also deducted from reported figures (the only unforeseeable expense deducted from 2006 and 2007 OIBDA was the impairment charge). (6) Figures are shown net of inter-segment charges between fixed and mobile segment (7) In 4Q 2007, Telefonica O2 reclassified its revenues from international calls terminated in mobile network, which were previously recorded in fixed segment, to mobile segment. To allow for relevant year on year comparison of 2007 and 2006 results, 2006 results were restated to include the reclassification as if it was applied in 2006. (8) including inter segment revenues (9) Figures are shown net of inter-segment charges between fixed and mobile segment (10) In 4Q 2007, Telefonica O2 reclassified its revenues from international calls terminated in mobile network, which were previously recorded in fixed segment, to mobile segment. To allow for relevant year on year comparison of 2007 and 2006 results, 2006 results were restated to include the reclassification as if it was applied in 2006. (11) In terms of 2008 guidance calculation, Revenues represent business revenues only (12) In terms of guidance calculation, OIBDA excludes other exceptional revenues /expenses not foreseeable in 2008. For comparison purpose, the equivalent other exceptional revenues/expenses registered in 2007 are also deducted from reported figures (the only unforeseeable expense deducted from 2007 OIBDA was the impairment charge). This information is provided by RNS The company news service from the London Stock Exchange