Compañía Anónima Nacional Teléfonos de Venezuela (Cantv) is the leading integrated telecommunication services provider in Venezuela. As of March 31, 2007, Cantv has nearly 3.6 million fixed telephony switched access lines in service, nearly 8.2 million mobile subscribers, and nearly 528 thousand broadband subscribers.
Cantv was incorporated in 1930 as a private company and operated under a service concession in Venezuela. By 1973, the Venezuelan Government had purchased all of Cantv’s shares. After decades of state ownership, in 1991, Venworld Telecom a private consortium led by GTE – currently Verizon Communications – purchased a 40% controlling interest in Cantv.
On April 8, 2007, the Venezuelan Government launched a tender offer to acquire Cantv’s shares in Venezuela (Class D) and in the United States (ADS). One month later on expiring the offer, the Government acquired 79.6% of the outstanding shares of the Company, in addition to the 6.6% which it previously owned, obtaining control of the Company with a total of 86.2% of its outstanding shares. Today, Cantv is an open capital company with its shares listed in the Caracas Stock Exchange and in the NYSE through an ADR program. Each ADR represents seven shares.
Cantv, jointly with Movilnet, Cantv.net and Caveguias -its wholly owned subsidiaries- provides comprehensive solutions to meet their customers telecommunication needs related to fixed and wireless communications, data transfer, Internet access, as well as directory services.
Cantv’s strategy, “Communications for everyone, anytime, anywhere, whichever their needs”, reflects Cantv’s intention to fulfill the growing needs of its customers, with no limitations on time, place or requirements. To achieve this, Cantv’s management has identified five strategic objectives embraced a commitment to act as a socially responsible corporation and:
- Number one in mobility
- Build value on broadband leadership
- To capture emerging mass markets
- Stimulate traditional business
- Excelling in operational efficiency and customer satisfaction
The first three objectives represent growth objectives in the markets or segments of greater potential and the last two objectives describe Cantv method of operating and doing business.
In 2006 Cantv reported revenues of US$ 3,162 million, EBITDA of US$ 818 million and net income of US$ 526 million, resulting from the strong growth experienced in our customer base in the last three years represented in 9.3% CAGR (2 years) in fixed lines, 59.7% CAGR (2 years) in mobile subscribers and 62.8% CAGR (2 years) in broadband subscribers.
Convenience Translation: Financial results are stated in accordance with International Financial Reporting Standards (IFRS). Translation of financial statements data to US$ has been performed solely for the convenience of the reader, converting bolivar amounts at the current official exchange rate of Bs. 2,150 per US$1.