• Cantv > Investors > English Version

  • 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.

    Key financial and operating indicators
    Millions of US$, unless otherwise indicated. Under international financial reporting standards (IFRS)
    2006 2005 2004 CAGR
    Revenues 3,162 2,367 1,784 33.1%
    EBITDA (2) 818 345 497 28.3%
    EBITDA Margin 25.9% 14.6% 27.9%
    EBIT (2) 418 (40) 187 49.5%
    EBITDA Margin 13.2% (1.7%) 10.5%
    Net Income 526 100 198 63.0%
    EPS (US$) 0.68 0.13 1.44 (31.3%)
     
    CAPEX (2) 558 446 241 52.2%
    CAPEX / Revenues 17.6% 18.8% 13.5%
    Free Cash Flow (2) 319 322 410 (11.8%)
    Net Cash Position (1) (2) 536 511 450 9.1%
    Subscriber (thousands)
    Fixed 3,915 3,405 3,060 13.1%
    Switched acces lines 3,448 3,098 2,884 9.3%
    Broadband 467 307 176 62.8%
    Mobile 7,918 5,188 3,106 59.7%
    Net Cash Position ** 511 450 397 13.5%
    Traffic (millions of minutes) 511 450 397 13.5%
    Fixed Local 12,463 13,965 14,135 (6.1%)
    Fixed DLD and ILD 2,453 2,480 2,571 (2.3%)
    Fixed to Mobile 2,860 2,368 1,919 22.1%
    Mobile 6,949 4,025 2,901 54.8%
             
    Employees 9,468 9,199 9,383 0.5%

    (1) Calculation based on the cash and temporary investments at end of the year minus short and long term debt.

    (2) These indicators includes certain Non-GAAP financial data. Consequently, we are providing a reconciliation of such information to comparable GAAP measures. Reconciliation of Non-GAAP financial measures

    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.

    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.

    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.






    Compañia Anónima Nacional Teléfonos de Venezuela. RIF: J-00124134-5.- Todos los derechos reservados.