Telefonica
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|Academic Year 2008 - 2009 |
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Module Co-ordinator: Mr. Patrick Barber
Study Group J
Andrea Adi Guna 200852001
Annemieke Smits 200852031
Gabriel Tai 200862013
Jay-jay van Gerwen N/A
Julia Perez Ocana 200852041
Leen van de Harst 200852036
Date: 4th November 2008
Total word count: 3240
Executive Summary
Telefónica has established itself as a leading company in the European telecommunication industry and has also spread their presence globally. In the time of the greatest financial crisis in the modern history, companies are competing harder for neither survival nor profit, and these present a major challenge for businesses, understandingly Telefónica as well, to control efficiency and performance.
In terms of operating activities, Telefónica’s revenue for 2007 was increased by nearly 10% from the previous year. In addition to that, the operating profits rise in a considerably high rate of nearly 27%. Additional free cash had been generated in this account. Other working capital had slightly declined, meaning that they have either decreased their current assets or increased their current liabilities (or a combination of both).
Mixed results came from the investment activites, where, Telefónica generated cash through the sale of property by the difference in 2006-2007. Furthermore they have invested heavily in the purchasing of property, plant, equipment (about $ 1 billion) and acquisitions of companies came...
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