Telefónica’s Net Profit Up 30.8% In 2010, To 10,167 Million Euros

The company complied, for the eighth year running, with the financial targets and commitments made with the market, and obtained higher than expected earnings per share, of 2.25 €

At its General Shareholders’ Meeting, Telefónica (NYSE:TEF) (LSE:TDE) will propose a 14.3% dividend increase for 2011, to €1.60/share, in line with the policy of increasing shareholder remuneration.

The Group has set targets for 2011 with the aim of capturing growth in a profitable manner, and expects revenue growth up to 2%, an OIBDA margin in the upper 30s, with a limited erosion year-on-year, and CapEx of approximately 9 Billion euros

• Solid growth: Consolidated revenues grew 7.1% in 2010 to 60,737 million euros (+9.9% in 4Q), driven by a solid performance in this item in Latin America (+13.3%) and Europe (+12.7%) and the growing contribution of the mobile data business (close to 9,300 million euros, +19.3% year-on-year organic growth).
• High degree of diversification: Telefónica Latinoamérica and Telefónica Europe represent 68% of the Group’s consolidated revenue and generate over 60% of consolidated OIBDA.
• Boosting commercial strategy: Telefónica has 287.6 million accesses worldwide, and posted growth in this item of 7.2% year-on-year organic. In 2010, the Company registered organic net adds of 19.2 million accesses. In Spain, despite the fierce competitive environment, net adds in the last year were six times the gains registered in 2009 in comparable terms.
• Strategy focused on value-added customers: In 2010, 53% of organic growth in net adds of mobile clients were in the contract segment, which represents 31% of the Group’s over 220 million accesses. Telefónica already has 22.2 million mobile broadband clients (+63.9%), and 17.1 million retail fixed broadband internet accesses (+27%). In addition, as a result of the Group’s bundling strategy, 89% of the retail fixed broadband accesses in Spain, and 86% of broadband accesses in Latin America form part of a duo or trio package.
• A leader in operating efficiency: At the close of 2010, OIBDA stood at 25,777 million euros, with year-on-year growth of 14% and an OIBDA margin of 42.4%. Operating cash flow stood at 14,933 million euros for the year
• Telefónica invested over 10,800 million euros in 2010, including the spectrum and license acquisitions carried out in Germany and Mexico. In Spain, despite the difficult economic climate, the company increased its investment by 8.4% to 2,021 million euros, consolidating its solid leadership position in the market and its commitment to the country.

Telefónica obtained solid results in 2010, complying, for the eighth consecutive year, with the financial targets and commitments made with the market. Telefónica’s year-end net profit increased 30.8%, hitting a new all-time record at 10,167 million euros, which puts earnings per share at 2.25 euros, outpacing the target of 2.10 euros set by the company.

Similarly, in line with its performance over the last eight years, Telefónica complied with the rest of the targets set and commitments made to the financial community. Therefore, in accordance with the criteria applied for setting these targets, revenues grew 3.8%, in the upper part of the announced range (+1%-+4%), OIBDA increased 1.4% (within the +1%-+3% range established) and CapEx - excluding spectrum - totalled 7,646 million euros.

Upon presenting these results at the close of 2010, Telefónica also announced its proposal to the Shareholders Meeting of a dividend of €1.60/share for 2011, which represents growth of +14.3% with respect to the 2010 dividend. Underpinned by the solid cash generation forecasts for 2011, this proposal confirms Telefónica’s commitment to making shareholder remuneration a priority use of cash and to gradually increase dividends per share, with the aim of paying out a minimum dividend of €1.75/share in 2012.

Before providing a breakdown of the income statement, we would underscore the Telefónica Group’s operations’ high degree of diversification, both in terms of geography and business, which - as is evident in our analysis of 2010 figures - played a key role in its earnings performance last year.

The strong growth posted by Telefónica Latinoamérica and Telefónica Europe drove Telefónica’s solid performance, offsetting the lower contribution of the business in Spain. It is noteworthy the growing contribution of the Latin America business to the Group’s results, supported by the positive performance in operations and the greater exposure to Brazil, following the acquisition of Portugal Telecom’s stake in Vivo last September. It should be noticed that Vivo is fully consolidated in the Group since October 2010 (prior to that date, the results of Vivo were proportionally consolidated), affecting therefore to year-on-year comparisons in reported terms as from the fourth quarter of the year.

More value-added customers to fuel further growth

The Company’s focus on growing its customer base and increasing the value of customers led to a solid advance in the number of accesses, especially in the broadband businesses (both wireline and mobile). In addition, it is noteworthy the higher proportion of the contract segment in the mobile business, thanks to active migration policies and to the rapid adoption of smartphones. Bundled offers in the wireline business showed also steady growth, reflecting the commercial priorities set for the year.

The intense commercial activity recorded throughout the year by the Group’s businesses across markets pushed total accesses up by 7.2% year-on-year in organic terms (+8.7% in reported terms), to 287.6 million. By region, of particular note are the expansion of the customer base at Telefónica Latinoamérica (+9.0% year-on-year) and Telefónica Europe (+6.2% year-on-year organic; +14.3% reported).

The increased commercial drive resulted in a year-on-year growth in gross additions of 13.3%. At the same time, customer loyalty programmes and the commitment to improving quality kept the churn rate stable year-on-year at 2.3% in 2010. As a result, the Company registered 19.2 million organic net additions during the year (1.5 times the net additions recorded in 2009), adding 5.7 million new accesses in the fourth quarter (+36.0% compared to the third quarter; +13.1% year-on-year).

Mobile accesses at the Telefónica Group stood at 220.2 million at the end of 2010, a year-on-year growth of 8.9% (both in organic and reported terms). Organic net additions reached 18.2 million in 2010 (1.3 times those recorded in 2009). The focus on high-value customers has been reflected in a significant increase in contract net additions compared to 2009: 53% of organic net additions corresponded to this segment, compared to 38% in 2009. This has left a total of 69.0 million contract customers (+15.9% year-on-year in organic terms), which represents over 31% of the Group’s total mobile accesses (+3 percentage points year-on-year organic).

The strong adoption of mobile broadband services, together with the launch of new and more segmented price schemes has allowed the Group to increase its number of mobile broadband accesses to more than 22.2 million by the end of 2010 (+63.9% year-on-year). This represents a penetration over the total mobile access base of 10.1%, 3.4 percentage points higher than at December 2009.

Retail fixed broadband accesses reached a total of 17.1 million (+27.0% year-on-year in reported terms, +10.9% organic). Net additions picked up in the fourth quarter to reach 422 thousand accesses. In 2010, net additions stood at 3.6 million accesses (1.5 million in organic terms). Brazil was once again the driver of the Group’s growth in this type of access, with Telesp registering 681 thousand net additions, a record-high figure in the Company’s history.

Bundled voice, broadband, and television services remain key to Group strategy and especially to churn control. In Spain, 89% of retail fixed broadband accesses are bundled as part of either a dual or triple play offer, while in Latin America the figure stands at 86%.

The number of pay-TV accesses stood at 2.8 million in 2010, an 8.9% increase in organic terms on December 2009 (+12.0% reported). Fixed telephony accesses totalled 41.4 million, down 2.7% year-on-year in organic terms, although the rate of decrease was slower in the fourth quarter than in previous periods. In reported terms, the number of accesses rose 1.8%.

Solid growth in revenues, driven by diversification

The increased customer base and the growing contribution from the mobile data business drove growth in revenues, which totalled 60,737 million euros in 2010, up 7.1% year-on-year (+9.9% in the fourth quarter). Foreign exchange rates added 2.2 percentage points despite the sharp devaluation in the Venezuelan bolivar, while changes in the consolidated perimeter accounted for 2.5 percentage points of the growth for the year.

The Group’s high-class diversification is a key factor behind the strong revenue trends. In 2010, Telefónica Latinoamérica and Telefónica Europe accounted for 68% of consolidated revenues, whereas Telefónica España’s contribution stood below 31%. This diversification is also behind the positive performance of revenues in organic terms, which grew 2.4% year-on-year in 2010. This figure is roughly in line with the growth rate recorded in the first nine months of the year. It is worth to mention that cuts in mobile termination rates dragged 1.0 percentage point to organic revenue growth. By region, it is noteworthy the sustained momentum in the year-on-year revenue growth at Telefónica Latinoamérica and Telefónica Europe. These regions account for 2.7 percentage points and 1 percentage points of the organic growth in consolidated revenues respectively, and offset the lower contribution from Telefónica España (-1.6 percentage points).

Consolidated operating expenses amounted to 40,375 million euros in 2010, a 13.8% year-on-year growth in reported terms. These expenses were negatively affected by non-recurrent restructuring expenses recorded in the second half of 2010 (1,262 million euros). These costs were mainly related to personnel reorganization (658 million euros) and firm commitments relating to the Telefónica Foundation’s social activities (400 million euros; of this total, 280 million euros are recorded in Telefónica S.A. and the rest is registered in Telefónica Latinoamérica).

Supply costs amounted to 17,606 million euros in 2010. Personnel expenses amounted to 8,409 million euros in 2010, up 9.3% year-on-year in organic terms. This figure was affected by personnel reorganisation costs recorded in the second half of the year. Subcontract expenses amounted to 12,228 million euros in 2010, up 7.9% on 2009 in organic terms.

The average number of employees in 2010 was 269,047 (13,896 employees more than at December 2009), mainly due to the larger workforce at Atento. Excluding Atento, Telefónica Group’s average workforce rose 2% year-on-year to 128,012.

Operating efficiency levels: a benchmark in the sector

In addition, it is important to highlight the value of the scale of the Group, reflected in the positive contribution to results from global projects launched in 2010. Indeed, the centralisation of certain Group processes had a positive effect on 2010 results, impacting revenues by 242 million euros and OIBDA by 200 million euros.

Gain on sales of fixed assets totalled 4,150 million in 2010, primarily explained by the positive impact of the revaluation of the previously held stake in Vivo at the date of acquisition of the 50% in Brasilcel owned by Portugal Telecom (3,797 million euros in the third quarter).

Operating income before depreciation and amortization (OIBDA) for 2010 stood at 25,777 million euros, a year-on-year growth of 14.0%, strongly affected by the gain on sales of fixed assets abovementioned recorded in the third quarter of the year, and despite the negative impact of non-recurrent restructuring expenses (1,262 million euros) also mentioned previously. Foreign exchange rates contributed with 1.2 percentage points to this growth, while changes in the consolidated perimeter represented 1.6 percentage points. The OIBDA margin stood at 42.4% for 2010 (+2.6 percentage points year-on-year). Stripping out the above mentioned impacts, the OIBDA margin would reach 38.3% in 2010.

In organic terms, which exclude the aforementioned non-recurrent restructuring expenses, OIBDA rose 0.8% year-on-year, an improved performance compared to the first nine months of 2010.

By region and excluding the positive impact of the revaluation of the previously held stake in Vivo already mentioned, Telefónica Latinoamérica increased its contribution to the Group’s OIBDA up by 5 percentage points year-on-year, to exceed 45% of the Group figure. Consequently, together with the higher contribution from Telefónica Europe, in 2010 over 60% of consolidated OIBDA was generated outside Telefónica España.

Operating income (OI) totalled 16,474 million euros in 2010, up 20.7% year-on-year in reported terms. In organic terms and excluding the non-recurrent expenses mentioned above, OI rose 4.5% year-on-year.

Profits from associates amounted to 76 million euros in 2010, up 59.8% year-on-year. This increase is mainly due to the improved results contributed by the associate Telco, S.p.A.

Net Financial Results (expenses) up to December 2010 amounted to 2,649 million euros (-19.9% year-on-year).

Financial strength

At the end of 2010, Net financial debt increased by 12,042 million euros with respect to the net financial debt at the end of 2009 (43,551 million euros), leaving the final figure in December 2010 at 55,593 million euros. The leverage ratio, net debt over OIBDA (including accumulated 100% of Vivo’s OIBDA to December 2010, excluding results on the sale of fixed assets and adjusted by firm commitments relating to the Telefónica Foundation’s social activities), stands at 2.4 times at December 2010.

During 2010, the financing activity of Telefonica Group, excluding short term Commercial Paper Programmes activity, rose to 15,800 million equivalent euros, with the main objective of partly financing in advance 2011 debt at Telefónica, S.A. level and finance the acquisition of 50% of Brasilcel. At the end of December, bonds and debentures represented 63%, on the consolidated financial debt breakdown, while debt with financial institutions reached a 37% weight.

Corporate income taxes for 2010 stood at 3,829 million euros, impacted by the reassessment of the tax assets in Colombia, amounting to 864 million euros and recorded in the fourth quarter of 2010. It is worth to mention that in the third quarter of 2010, this caption also included 321 million euros of fiscal effects relating to the revaluation of the Company’s previously-held stake in Vivo at the date of acquisition of the 50% in Brasilcel owned by Portugal Telecom. On the positive side, income tax expense for 2010 has decreased in the amount of 138 million euros due to tax credits generated in México and Terra Brazil, which are based on the expected taxable income to be generated by the companies.

Profit attributable to minority interests increased the net income figure by 95 million euros in 2010, reversing the trend observed both until September 2010 (-153 million euros) and compared to 2009 (-161 million euros).

The result of all the above was consolidated net income of 10,167 million euros for 2010, 30.8% higher year-on-year. The main drivers behind this performance were: the positive net impact from the revaluation of the previously held stake in Vivo at the date of acquisition of the 50% in Brasilcel owned by Portugal Telecom (3,476 million euros); non-recurrent restructuring expenses registered in the second half of 2010 (862 million euros, net of taxes and minority interests); the write-down of tax credits in Colombia (450 million euros, net of minority interests). As a result, basic earnings per share stood at 2.25 euros (+31.6% year-on-year).

CapEx, excluding spectrum acquisitions, reached 8,228 million euros, up 13.6% on 2009 figure (+5.9% in organic terms). The Company continues to focus its investments on growth and transformation projects (77% of total investment, excluding spectrum acquisitions), fostering the development of broadband services (both fixed and mobile). Taking into account the spectrum acquisitions in Germany in May and the acquisition of additional spectrum and licenses in Mexico, CapEx for 2010 amounted to 10,844 million euros.

As a result, operating cash flow (OIBDA-CapEx) totalled 14,933 million euros in 2010 (-2.7% year-on-year). In organic growth terms and stripping out spectrum acquisitions, operating cash flow dropped 1.7% year-on-year.

RESULTS BY REGIONAL BUSINESS UNITS

TELEFÓNICA ESPAÑA

Against the backdrop of an adverse economic environment, austerity measures and strong price oriented competition, Telefónica España recorded a high level of commercial activity in 2010. Thus, aligned with the management priorities set for the year, the Company sustains its solid market leadership, especially in terms of revenue and profitability.

It is worth highlighting the 926 thousand net additions registered for the full year (not considering the disconnections in May following the process of identifying inactive prepay customers), that more than six fold the comparable figure recorded in 2009. It is also noteworthy the higher level of commercial activity recorded in both the wireline and wireless businesses, with an overall 10.5% year-on-year growth in gross additions in 2010, which coupled with continued churn management, drove total accesses to 47.6 million by year end. Net additions in the fourth quarter totalled 227 thousand (+4.9% year-on-year).

In the wireline business it should be noted the growth posted by retail fixed broadband Internet accesses in 2010 (+4.5% year-on-year) and the significant increase of Pay TV customers (12.1% year-on-year). On the other hand, it is remarkable the lower retail fixed line losses (-920 thousand in 2010), which decreased 18.3% year-on-year. Additionally, in the mobile business, growth in the contract segment remained solid (+6.9% year-on-year). It should be highlighted the increase in the mobile broadband customer base, which reached 4.8 million by year end, 1.7 times higher than at the end of 2009.

As for reported economic-financial results, against the backdrop of lower consumption and increased price pressure, the loss of higher-margin revenue and increased commercial efforts relative to 2009 had a direct impact on OIBDA. In addition, operating expenses in 2010, and OIBDA by extension, reflect the TV tax introduced in the year (107 million euros) as well as non-recurrent restructuring expenses, mainly related to personnel reorganization plans, booked in the fourth quarter of the year (202 million euros). Another factor worth recalling is the 220 million euros capital gain on the disposal of Medi Telecom booked in the fourth quarter of 2009.

Revenue totalled 18,711 million euros in 2010, down 5% year-on-year in reported terms, impacted primarily by the trading environment, lower revenue related to Universal Service (95 million in 2010 vs. 223 million in 2009), the exit of Telyco Marruecos from the consolidation perimeter (57 million in 2009) and revenue from the sale of applications rights (101 million in 2010 vs. 48 million in 2009). In comparable terms, revenue declined 4.4% year-on-year in 2010. This evolution is primarily explained by lower consumption across businesses and strong competition. Against this backdrop, it is worth highlighting the healthy performance of IT revenue in 2010 in the wireline business (+9% year-on-year in comparable terms). On the other hand, in the wireless business it is especially noteworthy the performance of connectivity revenue (+54.3% year-on-year), which is cementing its status as a key revenue driver.

Operating expenses amounted to 10,489 million euros in 2010, a slight increase of 0.8% year-on-year in reported terms. In comparable terms, operating expenses decreased 1.5% in 2010 (-2.1% in the quarter), thanks to the efficiency measures implemented.

As a result, operating income before depreciation and amortization (OIBDA) amounted to 8,520 million euros in 2010 (-12.7% year-on-year in reported terms), standing the OIBDA margin at 45.5%. In comparable terms, OIBDA decreased 6.9% year-on-year. The Company maintained a high operational efficiency as reflected by the comparable OIBDA margin, which stood at 46.9% for the full year.

CapEx totalled 2,021 million euros in 2010, up 8.4% year-on-year, driven by the Company’s strategic focus on the development of growing services, particularly fixed and mobile broadband. Operating cash flow (OIBDA-CapEx) amounted to 6,499 million euros in 2010, a year-on-year decline of 10.7% in comparable terms.

Commercial Activity and Revenue performance by Business Unit

Wireline Business

Total wireline accesses reached 16.0 million at year end, and remained virtually stable year-on-year in 2010 (-0.4% on 2009), posting a much better performance than in 2009 (-2.4% year-on-year). It is also worth highlighting the significant year-on-year reduction in net losses of retail wireline telephony accesses in both the quarter (-27.3%) and the full year (-18.3% year-on-year). As a result, retail wireline accesses, impacted by loops unbundling, declined 6.5% on 2009 to 13.3 million, implying an estimated market share of around 69%.

Telefónica España held on to its solid leadership position in the wireline broadband Internet access market, with more than 5.7 million accesses at year end (+4.5% year-on-year), implying an estimated market share of over 53%. Pay TV accesses recorded a positive performance in 2010, with 85 thousand net additions (15 thousand in the quarter), driving the customer base to over 788 thousand accesses (+12.1% year-on-year), and leaving an estimated market share of almost 19%. On the other hand, the total number of Dúo and Trío packages accounted for 89% of the Company's retail broadband Internet accesses by year end.

Revenue declined 6.3% year-on-year in reported terms to 11,397 million euros in 2010. In comparable terms, revenue fell 5.3% year-on-year in 2010, primarily driven by the performance in access and voice revenue in an adverse economic environment.

Wireless Business

Telefónica maintained a strong commercial activity throughout 2010. Net additions posted healthy growth in 2010 (1.4 times the 2009 figure in comparable terms) amounting to 884 thousand accesses (not considering the disconnections in May following the identification of inactive prepay customers). The Company’s focus on the contract segment drove net additions in this segment over one million accesses in the full year (roughly 1.4 times the 2009 figure), with 288 net additions in the quarter. As a result, the contract segment continued to post solid growth in 2010 (+6.9% year-on-year), accounting for over 67% of the Company’s total mobile accesses. It is worth noting the fact that this strategy, focused on the customer value, enabled Telefónica to sustain its leadership in the Spanish mobile telephony market, being the operator presenting the widest gap between revenue and access share. As a result, the Company’s mobile telephony customer base ended 2010 at 24.3 million accesses, up 3.3% on December 2009 figure.

Revenue totalled 8,550 million euros in 2010, a year-on-year decline of 4.6% in reported terms (-6.1% in the quarter).

RESULTS BY REGIONAL BUSINESS UNITS

TELEFÓNICA LATINOAMÉRICA

In 2010 Latin America registered strong economic growth, further strengthening the bases of a young social structure with a growing middle class in an increasingly stable institutional framework. At the same time, Brazil has strengthened its position not only as a regional leader but also as a major player on the global stage. Telefónica reinforced its benckmark position in this key market in 2010, after increasing its stake in Vivo in the third quarter.

In 2010 Telefónica Latinoamérica delivered a strong operating performance, while maintaining high levels of efficiency. Thanks to its differential asset portfolio in the region, the Company reported net additions of 15.2 million accesses in 2010 (4.6 million in the fourth quarter), to reach a total of 183.7 million accesses at the end of December (+9% year-on-year). This performance was underpinned by the growth of its mobile and broadband businesses and the stability of traditional wireline accesses.

Telefónica managed 149.3 million mobile accesses in the region, up 10.8% year-on-year. Particularly noteworthy was the quality of the growth, the result of an acquisition policy focused on customer value and a clear commitment to migration from prepay to contract as a value driver. Thus, contract net additions accounted for 46% of the total in 2010. As a result, the contract customer base advanced by 28.9% year-on-year, representing 20% of the total customer base at year end.

In the wireline business, in 2010 the Company continued to focus on improving quality indicators and customer satisfaction levels while maintaining its focus on bundles, reporting positive operating results. The focus on bundling and broadband is reflected in the fact that 66% of wireline accesses had signed up for some form of bundled offer as of the end of December 2010. Furthermore, 86% of broadband accesses are also under a double or triple play offers.

Broadband accesses rose again with net additions at record levels thanks to Telesp, the acceleration of growth in Colombia and the consolidation of growth in Argentina and Peru. As a result, broadband accesses stood at 7.4 million at the end of December, up 15.8% year-on-year. In pay TV the customer base stood at 1.8 million at the end of December 2010 (+8.7% year-on-year). In the traditional business the Company continued to gear its efforts towards maintaining a stable customer base. Thus, fixed accesses totalled 24.4 million at the end of 2010, virtually unchanged from a year earlier.

As for Telefónica Latinoamérica’s financial results, it should be noted that year-on-year comparisons from the fourth quarter of 2010 reflect the full consolidation of Vivo since October 2010 (previously this company's results were proportionately consolidated) following the acquisition of 50% of Brasilcel from Portugal Telecom on 27 September 2010. In addition, 2010 OIBDA is affected by the positive contribution from the revaluation of our previously held stake in Vivo at the date of the acquisition of the 50% in Brasilcel owned by Portugal Telecom (3,797 million euros booked in the third quarter). On the other hand, the OIBDA is affected by non-recurrent restructuring expenses booked in the fourth quarter of 2010 (410 million euros), mainly related to personnel reorganization (159 million euros) and firm commitments linked to Telefónica Foundation’s social activities (120 million euros). It is also important to note that the year-on-year comparison in euros with 2009 is sharply distorted by the devaluation of the Venezuelan bolivar at the beginning of 2010.

Revenue in 2010 totalled 26,041 million euros, with solid year-on-year growth in organic terms of 6.7%, in line with the first nine months. In terms of contributions by country, Brazil remained the biggest contributor in the region in 2010, generating 42.7% of revenue. The next largest contributors were Argentina (11.8% of revenue), Venezuela (8.9%), Chile (8.4%), Peru (7.5%) and Mexico (7%).

Operating expenses reached 16,965 million euros in 2010, up 7.6% year-on-year in organic terms that exclude non-recurrent restructuring expenses already mentioned.

Operating income before depreciation and amortization (OIBDA) reached 13,782 million euros in 2010 (+50.7% year-on-year in reported terms). In organic terms that exclude the impact from non-recurrent restructuring expenses in the fourth quarter, OIBDA was up 9.1% year-on-year.

CapEx in 2010 totalled 5,535 million euros (+12.7% year-on-year in organic terms), mainly related to mobile broadband expansion, as well as the enhancement of fixed broadband service. Operating cash flow (OIBDA-CapEx) amounted to 8,247 million euros (+6.9% year-on-year in organic terms that exclude the impact from non-recurrent restructuring expenses in the fourth quarter).

BRAZIL

Telefónica managed 76 million accesses in Brazil at the end of 2010 (+13.4% year-on-year increase), after posting net additions of 9.0 million accesses (+44.6% year-on-year growth). As a result, the Company consolidated its position as market leader in accesses, underlining Vivo's leadership in the mobile market while posting a marked improvement in the operating results of Telesp.

In the mobile business, Vivo ended 2010 with 60.3 million accesses, up 16.5% year-on-year, maintaining its market leadership after posting net additions of 8.5 million accesses. In the wireline business, Telesp consolidated its competitive and operating improvement in 2010, with quality levels that are a benchmark in the market. As a result, net additions in 2010 totalled 446 thousand accesses, underscoring the trends seen in previous quarters.

It should be noted that financial results from the fourth quarter of 2010 reflect the full consolidation of Vivo since October 2010 (previously this company's results were proportionately consolidated) after the acquisition of 50% of Brasilcel from Portugal Telecom on 27 September 2010. Telefónica's revenues in Brazil totalled 11,119 million euros in 2010, a year-on-year increase of 12.1% in local currency and of 3.6% in organic terms, with organic growth rate accelerating to 5.6% in the fourth quarter, thanks to the strong performance of the mobile business. Operating income before depreciation and amortization (OIBDA) in 2010 amounted to 4,074 million euros (+9.6% year-on-year in reported terms). The OIBDA margin stood at 36.6% in 2010 in reported terms.

In 2010 CapEx totalled 1,797 million euros (+12.5% year-on-year organic), leaving an Operating cash flow (OIBDA-CapEx) of 2,277 million euros.

VIVO: Vivo continues to lead the market in terms of accesses, revenue and profitability. According to data from Anatel, Vivo’s market share at year end 2010 stood at 29.7%, leading the way in higher value segments where it attained a market share in the contract segment of 35.2%.

The Company managed 60.3 million accesses at the end of 2010, up 16.5% year-on-year, after adding 8.5 million accesses in the year and 2.6 million in the fourth quarter. Contract net additions in 2010 represented 33% of the total and were 2.3 times higher than in 2009. As a result, the contract segment now accounts for 21% of total accesses, up 2 percentage points year-on-year.

Revenues amounted to 4,959 million euros in 2010, up 9.3%, year-on-year in organic terms, with growth accelerating in the fourth quarter to 11.4%. Data revenues advanced 62.3% year-on-year in organic terms in 2010 (+53.5% year-on-year in the fourth quarter), and accounted for 19% of mobile service revenues in 2010. Operating income before depreciation and amortization (OIBDA) amounted to 1,611 million euros in 2010. In 2010, Operating cash flow (OIBDA-CapEx) reached 863 million euros, as CapEx in 2010 totalled 748 million euros (+16.3% year-on-year in organic terms).

TELESP: In 2010, two landmark achievements are especially noteworthy: the Company reported positive net additions of traditional lines for the first time since 2004 and in the broadband business, attained net additions of 681 thousand accesses, its highest ever figure which led to an upturn in its market share. As a result, Telesp reached 15.7 million accesses at the end of 2010. As of December 2010, broadband accesses totalled 3.3 million (+25.8% year-on-year). In Pay TV, the Company managed 486 thousand accesses at the end of 2010, stable year-on-year.

At the same time, financial results are gradually reflecting the improvements at the operating level. Thus, full-year revenues totalled 6,843 million euros, stable year-on-year (+0.2% in local currency), with improved trends in the second half of the year (+0.5% in the fourth quarter in local currency). Operating income before depreciation and amortization (OIBDA) in 2010 amounted to 2,419 million euros (-7.5% year-on-year in local currency), leading to an OIBDA margin of 35.4%.

In 2010, CapEx stood at 1,049 million euros (+9.9% year-on-year in local currency), mainly devoted to new businesses development. Operating cash flow (OIBDA-CapEx) amounted to 1,370 million euros in 2010.

ARGENTINA

Growth in the Argentine telecommunications market remained strong in 2010. In this context, Telefónica consolidated its leadership with a strategy focused on increasing customer value. In the wireline business, this was reflected on the promotion of bundles and improved quality through a differential broadband offering, and in the mobile business, on leveraging the community effect, prepay to contract migrations and the growth of mobile broadband. Telefónica Argentina managed 22.3 million accesses at the end of 2010 (+1.8% year-on-year), fuelled by the growth in fixed broadband accesses (+16.3% year-on-year) and the stable fixed telephony accesses (+0.3% year-on-year).

Revenues in 2010 totalled 3,073 million euros, up 17.9% year-on-year in local currency. Operating income before depreciation and amortization (OIBDA) reached 1,082 million euros in 2010, recording a 9.8% year-on-year growth in local currency. CapEx totalled 398 million euros in 2010, with operating cash flow (OIBDA-CapEx) of 684 million euros, up 2.5% year-on-year in local currency.

T. MÓVILES ARGENTINA: Telefónica managed 16.1 million mobile accesses in Argentina at year end. It should be highlighted the strong performance posted by the contract segment, up 11.2% year-on-year to account for 36% of the total customer base.

Revenues in 2010 totalled 1,979 million euros (+20.6% year-on-year in local currency), with the positive growth trend consolidated in the fourth quarter (+23.1% year-on-year in local currency). Operating income before depreciation and amortization (OIBDA) reached 707 million euros in 2010, up 16.8% year-on-year in local currency. CapEx totalled 191 million euros in 2010, up 35.6% year-on-year in local currency, and was focused on expanding the capacity and coverage of the 3G network.

TELEFÓNICA DE ARGENTINA: Telefónica de Argentina managed 6.1 million accesses at the end of 2010, up 2.9% year-on-year, due to the strong growth in fixed broadband accesses (+16.3% year-on-year) and stable wireline accesses (+0.3% year-on-year). In the broadband business Telefónica de Argentina consolidated its differential position in the market, based on quality and benchmark service. At the end of 2010 the Company managed 1.4 million accesses. It is worth mentioning the Company's bundling strategy, as 72% of broadband accesses were bundled at the end of 2010 (+5 percentage points year-on-year).

Revenues totalled 1,187 million euros in 2010, a year-on-year increase of 13.5% in local currency. Operating income before depreciation and amortization (OIBDA) reached 375 million euros in 2010. CapEx totalled 207 million euros in 2010 (+16.9% year-on-year in local currency).

CHILE

At the end of 2010 Telefónica Chile maintained its market leadership in Chile, promoting all its services under the Movistar brand. This has become a competitive advantage for the Company, providing an integrated and global service to its customers. Telefónica managed 11.9 million accesses at the end of December 2010, up by a solid 11.8% year-on-year, driven by the strong growth of mobile accesses (+16.9% year-on-year), with a robust performance of mobile broadband and the contract segment (+25.2% year-on-year), and the focus on fixed broadband (+4.9% year-on-year) and pay TV expansion (+19.7% year-on-year).

Revenues in 2010 amounted to 2,197 million euros, up 4.3% year-on-year in local currency, posting a strong acceleration in the fourth quarter. Operating income before depreciation and amortization (OIBDA) in 2010 reached 1,092 million euros, up 24.5% year-on-year in local currency. CapEx in 2010 totalled 516 million euros.

T. MÓVILES CHILE: Telefónica Móviles Chile managed 8.8 million accesses at the end of 2010, up 16.9% year-on-year, consolidating the acceleration of the growth trend seen in prior quarters. The contract segment remains a key growth lever (+25.2% year-on-year), accounting for 30% of the customer base.

Revenues totalled 1,266 million euros in 2010, up 9% year-on-year in local currency (+12.5% in the quarter), driven by the strong increase in mobile service revenues. Operating income before depreciation and amortization (OIBDA) amounted to 610 million euros, a strong 19.2% year-on-year increase in local currency. CapEx in 2010 amounted to 294 million euros.

TELEFÓNICA CHILE: Telefónica de Chile managed 3.1 million accesses at the end of 2010. The broadband customer base stood at 821 thousand accesses at the end of December 2010 and Pay TV accesses totalled 341 thousand in December.

Revenues in 2010 totalled 1,038 million euros, up 1.1% year-on-year in local currency on the back of the steady improvement over the year. Operating income before depreciation and amortization (OIBDA) amounted to 476 million euros, a 27.2% year-on-year increase in local currency (+63.1% in the quarter). CapEx in 2010 amounted to 222 million euros.

PERU

Telefónica maintained its leadership position in the Peruvian market, managing 17 million accesses at year end 2010 (+6.5%year-on-year growth), on the back of the positive trend in fixed broadband accesses (+10.8% year-on-year) and mobile accesses (+9.2% year-on-year).

Revenues totalled 1,960 million euros in 2010, up 2% year-on-year in local currency, and Operating income before depreciation and amortization (OIBDA) reached 812 million euros in 2010, up 1.8% year-on-year in local currency. CapEx totalled 295 million euros in 2010.

T. MÓVILES PERÚ: At December 2010, Telefónica Móviles Perú managed 12.5 million mobile accesses, (+9.2% year-on-year), underpinned by the excellent performance in the contract segment where accesses almost doubled year-on-year. Contract accesses accounted for 19% of the total customer base.

Revenues in 2010 rose 6.4% in local currency to 1,001 million euros, consolidating the improved trend showed throughout the year. Operating income before depreciation and amortization (OIBDA) totalled 411 million euros in 2010 (up 12.3% year-on-year in local currency). CapEx amounted to 134 million euros in 2010.

TELEFONICA DEL PERÚ: Telefónica del Perú managed 4.4 million accesses at year end 2010, with the bundled service offering remaining the Company’s key growth driver. Fixed broadband accesses stood at 851 thousand at year end 2010 (+10.8% year-on-year). Pay TV reached 691 thousand accesses. The success of service bundling strategy is reflected in the number of bundled accesses: at year end 2010, 54% of traditional wireline accesses were bundled, while 72% of fixed broadband accesses had either a Duo or Trio package.

Revenues totalled 1,097 million euros in 2010. Operating income before depreciation and amortization (OIBDA) amounted to 401 million euros in 2010. CapEx amounted to 161 million euros in 2010.

COLOMBIA

Telefónica consolidated its competitive position in the Colombian market in 2010, achieving overall operational improvements underpinned by changes in its commercial approach and in the management of the Company. This operational improvement was also reflected in its financial results. Telefónica managed 12.4 million accesses in Colombia at the end of 2010, up 10.7% year-on-year.

Revenues totalled 1,529 million euros in 2010 (+1.3% year-on-year in local currency), reversing the decline recorded in the first nine months of the year thanks to the 9.9% growth posted in the fourth quarter. Operating income before depreciation and amortization (OIBDA) amounted to 484 million euros in 2010, up 2.6% year-on-year in local currency. CapEx in 2010 amounted to 334 million euros.

T. MÓVILES COLOMBIA: Telefónica Móviles Colombia ended 2010 having further consolidated the operational and financial improvements achieved since the beginning of the year. The customer base totalled 10.0 million accesses in December 2010 (+11.6% year-on-year), driven by the increase in contract customers (+32% year-on-year). It is worth pointing out the positive performance of mobile broadband, further consolidating its position as a key growth driver.

Revenues in 2010 increased 7.1% year-on-year in local currency to 872 million euros. Operating income before depreciation and amortization (OIBDA) totalled 237 million euros in 2010, a year-on-year increase of 2.8% in local currency. CapEx in 2010 amounted to 156 million euros.

TELEFÓNICA TELECOM: Telefónica Telecom recorded significant commercial and operating improvements in 2010. Telefónica Telecom managed 2.3 million accesses at the end of 2010 (+6.8% year-on-year), recording 150 thousand net additions in 2010. Broadband accesses totalled 548 thousand at the end of 2010 (+30.4% year-on-year). Pay TV accesses reached 205 thousand (+61.4% year-on-year).

Financial results continue to reflect improved operating trends again this quarter. Revenues amounted to 700 million euros in 2010, after posting year-on-year positive growth for second quarter in a row. Operating income before depreciation and amortization (OIBDA) showed a significant improvement, totalling 249 million euros (+2.9% year-on-year in local currency). CapEx in 2010 amounted to 178 million euros.

MEXICO

Estimated penetration in the Mexican mobile market reached 82% by year end 2010, up 7 percentage points year-on-year. At year end 2010, Telefónica Móviles México managed 20.2 million accesses, up 14.1% from December 2009. Mobile accesses stood at 19.7 million (+13% year-on-year), boosted mainly by growth in the contract segment (+49.3% year-on-year).

The Company’s estimated share of the mobile market surpassed 21.3% (+0.4 percentage points on December 2009), thereby consolidating the improvement in its competitive position and extending the market share gain registered in recent years. Net additions reached 2.3 million in 2010 (+9.2% year-on-year) and 901 thousands in the fourth quarter. Contract segment now accounts for 8% of Telefónica Móviles México’s customer base (+2 percentage points compared to year end 2009) and 23% of net additions for the year.

Revenue totalled 1,832 million euros in 2010, a year-on-year increase of 5% in local currency. Operating income before depreciation and amortization (OIBDA) reached 623 million euros in 2010. CapEx totalled 1,580 million euros in 2010, reflecting the cost of the licence for use of the 1900 MHz and 1700 MHz frequencies awarded to Telefónica and the renewal of its 800 MHz licences for a total of 1,237 million euros.

VENEZUELA

For a better understanding of the evolution of Telefónica Móviles Venezuela’s financial results in euros, it should be noticed that in early January 2010 the Venezuelan government devalued the bolivar fuerte. Therefore in 2010, the conversion of Telefónica Móviles Venezuela’s financial results is delivered at an exchange rate of 4.3 bolivar fuerte per dollar, which implies a year-on-year devaluation of 50%. It must be borne in mind that the Company’s financial results reflect a hyperinflation adjustment for both 2009 and 2010. For comparative purposes and to facilitate the interpretation of year-on-year changes with respect to 2009 in local currency of the headings affected by the hyperinflation adjustment are reported excluding the impact of this adjustment (changes in organic terms).

At year end 2010, the Company managed over 10.6 million accesses, of which 9.5 million were mobile accesses. It is worth highlighting the growth in the contract customer base (+20.9% year-on-year), with this segment already accounting for 8% of total accesses.

Revenue continued to perform well in 2010, with high growth rates, posting a 15% year-on-year increase in organic terms to reach 2,318 million euros. Operating income before depreciation and amortization (OIBDA) totalled 1,087 million euros in 2010, up 10.4% year-on-year in organic terms, extending the increasing growth momentum evidenced throughout the year. The Company maintains its significant investment effort, so that CapEx increased by 18.7% year-on-year in organic terms to 293 million euros in 2010. Operating cash flow (OIBDA-CapEx) amounted to 794 million euros, with a 7.7% year-on-year growth in organic terms.

CENTRAL AMERICA

Mobile penetration in Telefónica's Central American markets is estimated at 98% as of December 2010, up 8 percentage points year-on-year. It is worth highlighting the penetration rate in El Salvador and Panama, which exceed 100%. At the end of December 2010, Telefónica managed 6.9 million total accesses (+9.7% year-on-year), of which 6.4 million were mobile accesses (+10.3% year-on-year).

Revenues in 2010 totalled 562 million euros and Operating income before depreciation and amortization (OIBDA) totalled 189 million euros in 2010. CapEx in 2010 amounted to 105 million euros (+16.3% year-on-year in constant euros), largely due to investment focused on increasing network coverage in Guatemala, El Salvador and Nicaragua.

ECUADOR

Estimated penetration of the Ecuadorean mobile market stood at 106% at the end of 2010, an increase of 13 percentage points year-on-year. Telefónica managed a total of 4.3 million accesses in Ecuador at year end 2010 (+13.4% year-on-year). Mobile accesses increased by 13.4% on December 2009 to 4.2 million, thanks to the excellent performance of the contract segment (+24.7% year-on-year) and mobile broadband accesses. Net additions in the mobile business reached 498 thousand accesses in 2010.

Revenue rose 11.8% in local currency to 396 million in 2010. Operating income before depreciation and amortization (OIBDA) rose 15.6% year-on-year in local currency to 121 million euros. CapEx totalled 60 million euros in 2010.

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TELEFÓNICA EUROPE

During 2010 Telefónica Europe delivered strong financial and operating performance built on the continued expansion of its customer base and the fast growth of mobile data revenues. At the end of December 2010, Telefónica Europe’s total customer base reached 56.3 million (+14.3% year-on-year, +6.2% in organic terms), with ongoing growth in the mobile contract segment complemented by internet and data accesses.

Mobile net additions for the year reached 2.8 million in organic terms and excluding the disconnection of 111 thousand inactive customers in the Czech Republic. As a result, total mobile customer base growth accelerated to 6% year-on-year in organic terms, reaching 46.7 million at the end of December 2010. Supported by the increased adoption of smartphones, the acquisition and retention of high value customers has improved the mobile customer mix in 2010, with the contract base growing 8.2% year-on-year in organic terms. Contract net additions reached 1.8 million in 2010, in organic terms and excluding Czech Republic disconnections, accounting for 65% of total net additions. Contract customers represent 49% of the total base (+1 percentage point year-on-year). It is worth noting that mobile broadband customers increased 45.6% year-on-year in 2010, resulting in a customer base of nearly 10 million or 21% of the total mobile base (15% in 2009).

Telefónica Europe’s wireline retail broadband accesses reached 4 million at year end, adding 2.4 million lines in 2010 (203 thousand in organic terms).

Revenues reached 15,255 million euros in the year, a growth of 12.7% year-on-year (+15.5% in the fourth quarter). HanseNet and JaJah contributed 807 million euros to revenues in the year (225 million euros in the fourth quarter). It should be highlighted the fact that organic revenue growth accelerated during the year to 4.4% year-on-year.

Operating expenses stood at 11,507 million euros in 2010, increasing 16.8% year-on-year. The year-on-year evolution is impacted by non-recurring restructuring expenses mainly related to personnel reorganization in the second half of the year (202 million euros recorded in the third quarter and 118 million euros in the fourth quarter). In organic terms, operating expenses would have increased 3.7% year-on-year in 2010.

As a result, operating income before depreciation and amortization (OIBDA) amounted to 4,014 million euros in 2010 and grew 2.6% year-on-year, with HanseNet and JaJah contributing 71 million euros in the year. Reported OIBDA margin was 26.3% in the year.

CapEx amounted to 3,072 million euros in the year, mainly impacted by the spectrum investment made in Germany (1,379 million euros). Operating cash flow (OIBDA-CapEx) was 942 million euros in the year (2,321 million euros excluding the acquisition of spectrum in Germany).

TELEFÓNICA O2 UK

Telefónica O2 UK delivered strong results in 2010 in a highly competitive environment, driven by benchmark contract churn and strong momentum delivered by providing its customers with the best user experience. The strong results were underpinned by the growth of mobile broadband and customers upgrading to smartphones.

The Company’s total mobile customer base (excluding Tesco Mobile) reached 22.2 million at the end of 2010 (+4.3% year-on-year), driven by a robust 9.8% year-on-year increase in the contract segment. Mobile net additions stood at 912 thousand in 2010, with 254 thousand in the fourth quarter. At the end of 2010, contract customers represented 47% of the base (+2.4 percentage points year-on-year).

Telefónica O2 UK’s wireline retail broadband Internet accesses reached 0.7 million lines at the end of December 2010 (+13.5% year-on-year).

Revenue growth accelerated in the fourth quarter to 9% year-on-year in local currency (+8.5% and +6.0% year-on-year in the third and second quarter, respectively) to reach 7,201 million euros in 2010 (+6.5% year-on-year in local currency). Mobile service revenues stood at 6,513 million euros in 2010, with a solid 5.6% year-on-year increase in local currency, which ramped up to 7.9% year-on-year in local currency in the fourth quarter. The continued growth of non-P2P SMS data revenues should be highlighted, with growth of 31.7% year-on-year in local currency in 2010. As a result, total data revenues as a proportion of mobile service revenues stood at 40% in 2010.

Operating income before depreciation and amortization (OIBDA) increased 4.9% year-on-year in local currency to 1,830 million euros in 2010. OIBDA margin reached 25.4% for the year.

CapEx increased 14.7% year-on-year in local currency in 2010 to reach 717 million euros, as the Company continued to further enhance its mobile network capacity and coverage, including the recent refarming of the 900MHz spectrum, to give its customers the best user experience. Operating cash flow (OIBDA-CapEx) reached 1,113 million euros in 2010.

TELEFÓNICA O2 GERMANY

Telefónica O2 Germany strengthened its position in the German market, adding 6.0 million accesses (including HanseNet) in 2010 to reach a total access base of 23.1 million.

The total mobile customer base reached 17 million lines, up 9.9% year-on-year. Net additions stood at 1.5 million in the year (+17.8% year-on-year). The contract segment made up 48% of the total customer base at the end of the year.

Telefónica O2 Germany’s wireline business continued to gain traction with 84 thousand retail broadband internet net additions in the fourth quarter, significantly higher than in the previous quarter (32 thousand), reaching 2.5 million accesses at the end of December, 2010. This was mainly due to HanseNet’s competitive product portfolio and new opportunities arising from our integrated distribution model.

Telefónica O2 Germany delivered strong revenue performance in 2010 totalling 4,826 million euros, a 28.9% year-on-year growth (+31.6% year-on-year in the fourth quarter). On an organic basis, revenues increased 7.9% year-on-year in 2010.

Operating income before depreciation and amortization (OIBDA) totalled 944 million euros in 2010, a 2.8% year-on-year growth (+23.2% year-on-year in the fourth quarter). As a result, OIBDA margin for 2010 was 19.6%. If HanseNet and non-recurrent restructuring expenses in both years were excluded, OIBDA margin would have reached 25.3% in 2010.

CapEx totalled 2,057 million euros in 2010, a 2.6 times increase over the previous year due to the investment in spectrum (1,379 million euros). Operating cash flow (OIBDA-CapEx) for 2010 totalled -1,113 million euros due to the investment in spectrum and non-recurrent restructuring expenses. In organic terms, and excluding the above-mentioned factors, operating cash flow would have been 3.4 fold higher than the previous year.

TELEFÓNICA O2 IRELAND

The total mobile customer base stood at 1.7 million at the end of December 2010 (-1.1% year-on-year), with a notably strong 5.4% year-on-year increase in the contract segment, representing 43% of the total base (+3 percentage points year-on-year). Contract net additions in 2010 reached 38 thousand (7 thousand in the fourth quarter) driven by prepay to contract migrations as well as mobile broadband uptake.

In 2010, revenues totalled 848 million euros, a year-on-year decline of 6.3%. Total data revenues in 2010 grew 3.5% year-on-year to represent 32% of service revenues, compared to 29% in 2009, with non-P2P SMS data revenue growth of 7.9% year-on-year.

Operating income before depreciation and amortization (OIBDA) totalled 275 million euros. Reported OIBDA margin reached 32.4% in 2010. The efficient CapEx management achieved by Telefónica O2 Ireland (-4.1% year-on-year to 60 million euros in 2010), and the already mentioned evolution of the OIBDA resulted in an operating cash flow (OIBDA-CapEx) decrease of 10.3% year-on-year in 2010 to 214 million euros.

TELEFÓNICA O2 CZECH REPUBLIC

At the end of December, the total number of accesses for Telefónica O2 Czech Republic, including Slovakia, stood at 8.5 million, an increase of 2.2% year-on-year.

The mobile customer base in the Czech Republic reached 4.8 million at the end of 2010, impacted by the disconnection of 111 thousand inactive customers in the second quarter of 2010. Contract customers increased by 1.7% year-on-year to reach 2.9 million at year end. As a result, the contract customer mix increased by 2.3 percentage points year-on-year to represent 59% of the total base. Fixed telephony accesses reached 1.7 million at the end of 2010 and the Company’s wireline retail broadband Internet accesses stood at 753 thousand at year end (+10.2% year-on-year). Pay TV customers reached 129 thousand by year end.

In 2010, Telefónica O2 Slovakia recorded 328 thousand net additions (+44% year-on-year) to reach 880 thousand customers (+59.2% year-on-year). In the fourth quarter of 2010, healthy commercial momentum continued with a record quarterly of 99 thousand net additions (+10.6% year-on-year). It should be highlighted that the contract customer base increased by 71% year-on-year to account for 38% of the total base at the end of 2010 (+2.6 percentage points year-on-year).

Revenues for 2010 were 2,197 million euros, a year-on-year decline of 6.8% in constant currency. The impact of Universal Service Obligation was 2 million euros in 2010 and 14 million euros in 2009. Operating income before depreciation and amortization (OIBDA) decreased 13.4% year-on-year in constant currency in 2010 to reach 953 million euros. This was impacted by a number of non-recurring items during the year. In reported terms, OIBDA margin stood at 43.4% in 2010.

CapEx in 2010 declined year-on-year by 12.5% in constant currency to 224 million euros. Combined with the above mentioned OIBDA evolution, operating cash flow (OIBDA-CapEx) reached 729 million euros in 2010.

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OTHER COMPANIES. ATENTO GROUP

In 2010 Atento continued to follow its strategy of revenue growth and diversification, maintaining the focus on the profitability of the business.

In 2010 revenues for Atento totalled 1,663 million euros, up 25.9% year-on-year after the fourth quarter posted year-on-year growth of 29.4%. In organic terms, revenues grew 15.7% y-o-y in 2010, which gradually accelerated along the year. By region, the Brazilian business, which accounted for more than half the revenue growth, both in reported and organic terms, contributed 54% of Atento revenues in 2010.

Operating income before depreciation and amortization (OIBDA) at Atento in 2010 amounted to 190 million euros, up 23.3% year-on-year. The OIBDA margin stood at 11.4% in 2010.

CapEx reached 88 million euros in 2010. As a result, operating cash flow (OIBDA-CapEx) totalled 102 million euros in 2010, a remarkable year-on-year growth of 64.0% in reported terms.