Telefonica's Imagenio Ends 2006 With A Bang

Telefonica of Spain's Imagenio had a strong finish in the fourth quarter of 2006. It grew from 206.6 thousand subscribers at the end of 2005 to 383.0 thousand subscribers at the end of 2006. Its quarterly growth figures slowed in the middle of the year, but came back at the end of the year. Even so, it added fewer subscribers than the fourth quarter of 2005:

• Q1 2005 22.1 thousand subscribers added 22.1 thousand total subscribers
• Q2 2005 35.4 thousand subscribers added 57.5 thousand total subscribers
• Q3 2005 34.6 thousand subscribers added 92.1 thousand total subscribers
• Q4 2005 114.5 thousand subscribers added 206.6 thousand total subscribers
• Q1 2006 43.7 thousand subscribers added 250.3 thousand total subscribers
• Q2 2006 17.2 thousand subscribers added 267.5 thousand total subscribers
• Q3 2006 36.9 thousand subscribers added 304.4 thousand total subscribers
• Q4 2006 78.6 thousand subscribers added 383.0 thousand total subscribers

Telefonica pointed out that it now has 10 percent of the pay TV subscribers in Span and that 40 percent of its 2006 growth came in the fourth quarter.

Telefonica has made a strong commitment to Pay TV. In addition to its Imagenio IPTV service in Spain, it is currently working on bringing IPTV to its Latin American subsidiaries. It also operates cable and satellite TV systems in Latin America. Its total pay TV subscriber base grew to 1.064 million subscribers at the end of 2006 from 683.2 thousand at the end of 2005.

You can find Telefonica's fourth quarter presentation at http://www.telefonica.es/investors/.

Telefonica has an aggressive IPTV program. It is the number three IPTV provider in Europe after Free and France Telecom. We expect that the growth of its IPTV subscribers will continue strong in 2007. We also expect to see it introduce IPTV services in Latin America in 2007, starting in Brazil.