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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April, 2006
Commission File Number: 001-14404
Telefónica del Perú S.A.A.
(Translation of registrant’s name into English)
Avenida Arequipa 1155
Santa Beatriz, Lima, Perú
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes No X
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
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Lima, April 19th, 2006
PUBLIC REGISTRY OF THE STOCK MARKET
NATIONAL SUPERVISORY COMMISSION
ON COMPANIES AND SECURITIES (CONASEV)
Gentlemen:
In compliance with the Stock Market Law and with the Regulation of Important Events, Reserved Information and Other Communications we hereby inform you that the following items were agreed upon in today’s Telefónica del Perú S.A.A.’s Board of Directors Meeting:
| 1. | The installment of the Board of Directors, as well as the appointment of those who will perform the offices of President, Vice President, Secretary and Sub-Secretary of such entity, who will be Antonio Carlos Valente Da Silva, José María Álvarez-Pallete López, Julia María Morales Valentín and Milagros Muñoz Bazán, respectively. |
| 2. | The formulation of the company’s individual and consolidated financial statements for the first quarter of 2006, which will be registered today on the independent document through the MVNet system, and its presentation before the National Supervisory Commission on Companies and Securities, Lima’s Stock Exchange and any other entities of the stock market which may apply. Enclosed herein is the Management Report of the aforementioned consolidated results. |
Also, in compliance with your entity’s request on the setting of the functional currency stated on the international version of the NIC 21 “Effects from the variation of the Exchange Rate of Foreign Currencies” (version 2003), we hereby inform you that in accordance with the guiding principles stated in paragraphs 9 through 12 of such NIC, the company’s functional currency is the Nuevo Sol. We must indicate that by means of Resolution N°038-2005-EF/93.01 the Regulations Council of Accountability (CNC) decided to stop, until December 31st 2006, the application of the aforementioned version of NIC 21 and reinstated for the same term the application in this country of NIV 21 (version 1993), as well as SICs 19 and 30, except the Allowed Alternate Treatment stated on paragraphs 20, 21 and 22 of the latter NIC.
We remain available for any additional information that you may find necessary.
Sincerely,
Julia María Morales Valentín
Stock Market Representative
TELEFÓNICA DEL PERÚ S.A.A.
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Quarterly Results
Telefónica del Perú S.A.A. and subsidiaries
January – March 2006
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Significant Events
A summary containing the most significant events since January 2006 is presented below:
| 1. | Boards of Directors’ Meetings |
Session of February 14, 2006
| • | It approved the individual and consolidated financial statements of the Company corresponding to the fourth quarter of 2005 and decided for their filing with the Comisión Nacional Supervisora de Empresas y Valores (CONASEV), the Lima Stock Exchange (BVL) and corresponding institutions of the stock market. |
Session of March 27, 2006
| • | It approved the Merger Project of Telefónica del Perú S.A.A. and Telefónica Empresas Perú S.A.A. As a result, Telefónica Empresas Perú S.A.A. would be merged into Telefónica del Perú S.A.A., with the termination of the legal representation of the first, without being subject to liquidation. |
Session of March 29, 2006
| • | It approved to call for the General Shareholders’ Meeting to be held on April 24, 2006. Such meeting will decide on the following items: |
| a) | Approval of the merger project between Telefónica del Perú S.A.A. and Telefónica Empresas Perú S.A.A. and the consequent modification of articles 5 and 6 of the Company’s bylaws. |
| b) | Granting powers to the Board of Directors to agree on the capital stock reduction and consequent modification of article 5 of the Company’s bylaws, if an eventual exercise of the right of separation of the shareholders of the Company and Telefónica Empresas Perú S.A.A. were to occur as a result of the approval of the merger project between the two companies. |
| 2. | Deliberations of the Mandatory General Shareholders’ Meeting (MGSM) held on March 24: |
| • | Approved the report of the management, the individual and consolidated financial statements, and the annual report of the fiscal year 2005. |
| • | Approved that the total amount of the net profits, once subtracted the legal reserve, be allocated to the accumulated earnings account for its later application. It granted powers to the Board of Directors so that, if considered appropriate and after evaluating the financial situation of the Company could: (i) determine the use of accumulated earnings, determine the payment of dividends for the total or partial amount of the retained earnings; and (ii) set a provisional dividend to be charged against the definite dividend that the MGSM of the year 2007 approves regarding the fiscal year 2006. |
| • | Approved a program of capital stock reduction for the reimbursement of the contributions of shareholders, which will be carried out in a period not exceeding twelve months counted from the date of the meeting and for a value of up to S/.1,000,000,000.00. It also granted powers to the Board of Directors so that, if necessary, it can establish the terms and conditions of such reduction. |
| • | Granted powers to the Board of Directors for the appointment of the external auditors for the fiscal year 2006. |
| • | Approved the amortization of 17,456,037 Class B shares of its own issuance held in Treasury to be charged against the capital stock and the accumulated earnings account. Such shares were purchased following the resolution taken by the General Shareholders’ Meeting held on March 26, 2004. In that sense, it agreed for the reduction of the capital stock in an amount that equals the |
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nominal value of the Class B shares held in Treasury, that is, in the amount of S/.17,456,037. As a result, the capital stock decreased from S/.1,721,964,417 to S/.1,704,508,380, represented by 1,704,508,380 shares, each with a nominal value of
S/.1.00, all subscribed and fully paid-in.
| 3. | Appointments and resignations: |
| • | On February 14, the resignation of Mr. Manuel Plaza to the position of Central Manager of Network and Operations was accepted. Mr. Juan José García was appointed as his replacement. On the same date, Mr. César Andrade was appointed as Central Manager of Human Resources. |
| 4. | On January 20, Telefónica del Perú S.A.A. acquired from Com S.A. 2,288,572 shares representative of the capital stock of Telefónica Servicios Digitales S.A.C. |
| 5. | On March 16, 2006, the General Shareholders’ Meeting of Telefónica Multimedia S.A.C. agreed to: (i) increase the capital stock from S/.223,846,551.00 to S/.260,002,294.67 as a consequence of the partial capitalization of the monetary correction accumulated until December 31, 2005; and (ii) reduce the capital stock in the amount of S/.55,751,532.67, to S/.204,250,762.00. Both operations will be effective on the same date, upon the period specified by article 218 of the “Ley General de Sociedades”. |
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TELEFÓNICA DEL PERÚ S.A.A. AND SUBSIDIARIES
Management discussion and analysis of the consolidated results
for the first quarter ended on March 31, 2006
It is recommended the reading of this report along with the corresponding financial statements and their notes, presented at the same time, since they form integral part of this document and contain complementary information.
Economic Environment
In spite of the political uncertainty associated with the presidential and congressional elections of April 9th, positive economic indicators continued being released during the 1st quarter of 2006. The GDP could have grown 5% with respect to the same period the year before. Although this increase is below the one shown in previous quarters the expansive stage of the national production continued its growth for the 19th consecutive quarter. During the first quarter of 2006 one of the most dynamic sectors was construction that may have grown at its higher rate since the last quarter of 1997, showing the higher dynamism of internal demand. Also, and in spite of the political noise, investment showed thirteen consecutive quarters of expansion.
On the price side, during the last twelve months inflation accelerated. During the first quarter the consumer price index registered an increase of 1.5% (the highest of the last 8 quarters). Higher inflation responds mainly to the increase in price of some agriculture products contained in the index basket such as sugar and potato. Yet, inflation over the last 12 months reached 2.5% by the end of March, in the middle range of the Central Bank (CB) target: 1.5% - 3.5%. Also (underlying) inflation over the last 12 months reached 1.41 % by the end of the first quarter.
The financial indicators were among the most affected during the first quarter due to the political uncertainty. The nuevo sol exchange rate reached levels of S/ 3.35 per dollar by mid January and dropped to levels of S/.3.28 by the end of February; subsequently the nuevo sol continued to depreciate and the exchange rate closed at S/.3.358 per dollar. However, by the end of the first quarter the nuevo sol had appreciated with respect to the December 31, 2005 period. It is worth mentioning that the Central Bank increased its funds rate 25 basis points to avoid a greater volatility of the currency exchange market. Thus the CB increased its reference rate from 3.25 % in December 2005 to 4% in March 2006.
Besides the raising of the Central Bank’s reference rate, high commodity prices, a trade balance surplus, a higher demand for local currency due to income tax payments and the purchase of US$ 364 million of Backus & Johnston’s shares by SAB Miller helped contain FX depreciation in an environment of political uncertainty.
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On the other hand, beginning in 2006 the country risk (measured by Embi+), reached levels of around 215 basic points and descended to levels of 128 basic points (its lowest level) on February 27. Because of political uncertainty, country risk climbed to 220 basic points but closed at 187 basic points by the end of the first quarter. On the other hand, the Lima Stock Exchange General Index increased 23.3% during the first quarter, where mining shares increased 32.8% prompted by significant price increases in commodities. However, the Lima Stock Exchange General Index dropped by 2.6% in March due to the upcoming presidential election.
Competitive Environment
During the first quarter of 2006, the competitive pressure in the different businesses in which the Company operates continued, both due to the presence of other companies as well as the substitution effect of other technologies like mobile telephony and voice over IP. Therefore, the strong increase in the number of users of mobile telephony has resulted in a heavy impact in the fixed-to-fixed and fixed-to-mobile traffic of minutes in the business of local telephony, while the main competitors in local telephony – Telmex and Americatel – continue with their strategy of mainly focusing on the corporate business sector. Furthermore, it is worth mentioning the increasing competition of mobile telephony, which also negatively impacted the businesses of public telephony and long distance.
The long distance business shows high competition with several players both in the direct dial-up as well as the sale of prepaid cards. The application by the Regulator of the tariff imputation proof (minimum prices in domestic long distance) did not allow Telefónica del Perú to match the lower prices of the competition, which resulted in a traffic drop and the consequent reduction in the market share. On the other hand and in the case of public telephony, the competition – mainly Telmex – had important growth in its plant.
Operating revenues1
Theoperating revenues in the 1Q06 totaled S/.1,123 million, 6.5% higher than in the 1Q05, mainly as a result of registering the revenues from Telefónica Empresas S.A.A. (Telefónica Empresas). Excluding the effect of the merger with Telefónica Empresas, revenues would have increased by 2.5%.
Therefore, higher revenues are recorded in the businesses of Data and Information Technology (+218.1%), Internet (+42.0%), Cable TV (+20.1%) and Public and Rural Telephony (+1.6%), which compensated the lower revenues registered in the businesses of Local Telephony (-6.1%), Long Distance (-2.8%) and Others (-3.9%).
It is worth noting that the Company has developed a vast effort to increase the penetration and reach a significant increase in the number of clients for the main services it provides (basic telephony lines, broadband and cable TV). Therefore, by the end of the 1Q06, the total number of accesses showed an important annual growth of 8.7% in fixed telephony lines, 53.3% in broadband accesses, 16.9% in cable TV subscribers and 6.5% in public and rural telephony lines.
Regarding the performance of the businesses, the revenues fromLocal Telephony– heavily affected by the application of the productivity factor of 10.07% – reached S/.414 million in the 1Q06, a decrease of 6.1% compared to the 1Q05. Nevertheless, by the end of the period, the plant in service reached 2.3 million lines, having grown 8.7% year-over-year, which reflects the strong effort developed by the Company to increase the penetration through the offer of prepaid or limit-consumption products that satisfy the specific needs of each market segment, as well as campaigns to retain and keep the customers loyal.
| 1 | On October 21, 2005, Telefónica del Perú S.A.A. acquired 97.86% of the capital stock of Telefónica Empresas S.A.A. |
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Long Distance revenues fell 2.8% in the 1Q06 when compared to the 1Q05, totaling S/.132 million. The lower revenues from
DLD (-8.0%), as a result of the lower traffic, were not offset by the higher revenues from ILD (12.5%), mainly as a result of the higher revenues from Incoming ILD, as well as traffic from outgoing calls coming from mobile operators. This market continues to be under pressure from a highly competitive environment, mainly in the prepaid card segment and public telephony of an informal nature. Additionally, regulatory measures like the tariff imputation proof in DLD established by Osiptel have reduced the volume of traffic.
The revenues fromPublic and Rural Telephony reached S/.213 million in the 1Q06, representing a 1.6% increase regarding the 1Q05. This increase is mainly due to the increase of revenues from rural telephony, resulting from the new condition of Telefónica as a Rural Operator, as well as the year-over-year growth of the plant in service by 6.5%, effects which were partially offset by the lower traffic per line due to the increase in mobile telephony and informal public telephony.
Cable Television revenues reached S/.85 million in the 1Q06, which represents a 20.1% increase compared to the 1Q05. This growth is explained by the year-over-year increase of 16.9% in the number of subscribers, reaching 475 thousand lines by the end of March 2006, as a result of the continuous commercial effort carried out to capture new clients, as well as the execution of a permanent program against illegal installations.
The revenues forInternetreached S/.122 million in the 1Q06, an increase of 42.0% compared to the 1Q05. This growth is chiefly explained by the growth of the broadband plant by 53.3%, reaching 360 thousand lines in service through commercial actions aimed to provide the customers with greater benefits.
The revenues forData and Information Technologyreached S/.71 million in the 1Q06, 218.1% higher than in the 1Q05. This result is mainly explained by the additional recording of the revenues for these services following the merger with Telefónica Empresas to the Telefónica del Perú consolidated group.
Operating expenses
The operating expenses in the 1Q06 totaled S/.915 million, showing an increase of 6.8% compared to the S/.856 million registered in the 1Q05. This is chiefly explained by the merger with Telefónica Empresas. In addition higher depreciation and amortization expenses (S/.47 million), personnel ( S/.17 million) due to a 21.3% increase in the average headcount, and materials and supplies (S/.8 million). Such increases were partially offset by the lower interconnection expenses (S/.22 million) and provisions (S/.3 million).
Operating Result
The operating result for the 1Q06 increased 5.0% compared to the 1Q05, from S/.199 million to S/.208 million. Excluding the effect of the merger with Telefónica Empresas the operating result increased 0.2%.
Non-operating Result
In the 1Q06, the non-operating result improved in S/.32 million, going from a loss of S/.93 million in the 1Q05 to a loss of S/.62 million in the 1Q06, mainly due to the fact that Net Expenses fell S/.52 million, as result of lower provisions. These results were partially counterbalanced, mainly by the effect of the net financial expenses that showed an increase of S/.17 million as a consequence on the one hand of higher debt level and on the other hand of higher negative effect of the net exchange loss which reached S/.5 million in the 1Q06 compared to the S/.2 million in the 1Q05.
Net result
The net result reached S/.72 million in the 1Q06, compared to the S/.20 million in the 1Q05. This increase is mainly explained by the merger with Telefónica Empresas and by the better non operating result.
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Consolidated Balance Sheet
The liquidity levels of the Company – measured by the current assets over current liabilities ratio – reached 0.64 in the 1Q06, lower than the 0.65 recorded in the 4Q05, mainly as a consequence of the lower cash and bank levels. Regarding the capacity for debt payment, the financial coverage ratio (debt – cash and cash equivalents / operating result + depreciation and amortization) slightly decreased from 1.02 in the 4Q05 to 0.95 in the 1Q06. Furthermore, the investments executed for the extension of the services reached S/.71.2 million in the 1Q06.
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TABLE 1
TELEFONICA DEL PERU S.A.A. AND SUBSIDIARIES1/.
CONSOLIDATED INCOME STATEMENTS (S/.000)2
(Prepared In Accordance With Peruvian GAAP)
| 1Q05 | 1Q06 | Var. Abs. 1Q06-1Q05 | Var. % 1Q06-1Q05 | |||||||||||||||
| % | % | % | ||||||||||||||||
Total Operating Revenues | 1,054,919 | 100.0 | 1,123,087 | 100.0 | 68,168 | 6.5 | ||||||||||||
Local Telephone Service | 441,514 | 41.9 | 414,364 | 36.9 | (27,150 | ) | (6.1 | ) | ||||||||||
Long Distance | 135,432 | 12.8 | 131,686 | 11.7 | (3,746 | ) | (2.8 | ) | ||||||||||
Public Telephones | 209,295 | 19.8 | 212,726 | 18.9 | 3,431 | 1.6 | ||||||||||||
Cable TV | 70,582 | 6.7 | 84,742 | 7.5 | 14,160 | 20.1 | ||||||||||||
Data & Information Technology | 22,364 | 2.1 | 71,147 | 6.3 | 48,783 | 218.1 | ||||||||||||
Internet | 86,247 | 8.2 | 122,436 | 10.9 | 36,189 | 42.0 | ||||||||||||
Other | 89,485 | 8.5 | 85,986 | 7.7 | (3,499 | ) | (3.9 | ) | ||||||||||
Total Operating Costs & Expenses | 856,288 | 81.2 | 914,615 | 81.4 | 58,327 | 6.8 | ||||||||||||
Interconnection Expenses | 170,078 | 16.1 | 147,653 | 13.1 | (22,425 | ) | (13.2 | ) | ||||||||||
Personnel | 93,803 | 8.9 | 111,253 | 9.9 | 17,450 | 18.6 | ||||||||||||
General and Administrative | 277,193 | 26.3 | 281,501 | 25.1 | 4,308 | 1.6 | ||||||||||||
Depreciation and Amortization | 280,480 | 26.6 | 327,230 | 29.1 | 46,750 | 16.7 | ||||||||||||
Management Fee | 10,415 | 1.0 | 14,847 | 1.3 | 4,432 | 42.6 | ||||||||||||
Materials and Supplies | 16,145 | 1.5 | 24,480 | 2.2 | 8,335 | 51.6 | ||||||||||||
Provisions | 17,272 | 1.6 | 14,584 | 1.3 | (2,688 | ) | (15.6 | ) | ||||||||||
Own Work Capitalized | (9,098 | ) | (0.9 | ) | (6,933 | ) | (0.6 | ) | 2,165 | (23.8 | ) | |||||||
Operating Income | 198,631 | 18.8 | 208,472 | 18.6 | 9,841 | 5.0 | ||||||||||||
Other Income (Expenses) | ||||||||||||||||||
Interest Income | 3,157 | 0.3 | 6,400 | 0.6 | 3,243 | 102.7 | ||||||||||||
Interest Expenses | (28,592 | ) | (2.7 | ) | (48,777 | ) | (4.3 | ) | (20,185 | ) | 70.6 | |||||||
Others Net | (66,041 | ) | (6.3 | ) | (13,889 | ) | (1.2 | ) | 52,152 | (79.0 | ) | |||||||
Net Currency Exchange (Loss) | (1,837 | ) | (0.2 | ) | (5,289 | ) | (0.5 | ) | (3,452 | ) | 187.9 | |||||||
Non Operating Income | (93,313 | ) | (8.8 | ) | (61,555 | ) | (5.5 | ) | 31,758 | (34.0 | ) | |||||||
Income Before Taxes and Participation | 105,318 | 10.0 | 146,917 | 13.1 | 41,599 | 39.5 | ||||||||||||
Worker’s Participation | (21,941 | ) | (2.1 | ) | (19,897 | ) | (1.8 | ) | 2,044 | (9.3 | ) | |||||||
Income Tax | (63,720 | ) | (6.0 | ) | (54,830 | ) | (4.9 | ) | 8,890 | (14.0 | ) | |||||||
Net Income | 19,657 | 1.9 | 72,190 | 6.4 | 52,533 | 267.2 | ||||||||||||
| 1/ | Starting November 2005 the financial statements of Telefonica del Perú S.A.A. And Subsidiaries include the results of Telefónica Empresas S.A.A. |
| 2/ | Starting January 1, 2005 and in accordance with the Consejo Normativo de Contabilidad by-law N°031-2004, the financial statements will not be adjusted for inflation for accounting matters. |
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TABLE 2
TELEFONICA DEL PERU S.A.A. AND SUBSIDIARIES1/.
Balance Sheet (S/.000)
ASSETS
| |||||||||||||||
| 1Q06 | 4Q05 | 3Q05 | 2Q05 | 1Q05 | |||||||||||
CURRENT ASSETS | |||||||||||||||
Cash and Banks | 463,660 | 634,189 | 331,241 | 768,061 | 282,242 | ||||||||||
Negotiable securities | 48,170 | 38,327 | 52,315 | 41,823 | 44,845 | ||||||||||
Accounts receivable - net | 651,315 | 698,615 | 585,709 | 591,746 | 547,770 | ||||||||||
Other accounts receivable | 128,212 | 107,202 | 93,975 | 91,969 | 249,492 | ||||||||||
Materials and supplies | 41,667 | 39,583 | 41,828 | 39,280 | 35,806 | ||||||||||
Prepaid taxes and expenses | 34,656 | 38,473 | 53,244 | 56,542 | 56,995 | ||||||||||
Total Current Assets | 1,367,680 | 1,556,389 | 1,158,312 | 1,589,421 | 1,217,150 | ||||||||||
LONG-TERM INVESTMENTS | 11,907 | 10,703 | 11,678 | 10,755 | 10,035 | ||||||||||
DEFERRED CHARGES | 33,438 | 10,487 | 8,266 | 8,699 | |||||||||||
PROPERTY, PLANT AND EQUIPMENT | 16,025,628 | 15,995,439 | 15,790,375 | 15,642,038 | 15,539,435 | ||||||||||
Accumulated Depreciation | (10,975,249 | ) | (10,675,496 | ) | (10,372,035 | ) | (10,109,099 | ) | (9,836,164 | ) | |||||
| 5,050,379 | 5,319,943 | 5,418,340 | 5,532,939 | 5,703,271 | |||||||||||
Write-Off Provision | (18,363 | ) | (30,777 | ) | (83,085 | ) | (88,510 | ) | (79,192 | ) | |||||
| 5,032,016 | 5,289,166 | 5,335,255 | 5,444,429 | 5,624,079 | |||||||||||
Other Assets, Net | 306,217 | 328,891 | 213,974 | 209,744 | 203,580 | ||||||||||
TOTAL ASSETS | 6,751,258 | 7,195,636 | 6,727,485 | 7,263,048 | 7,054,844 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
| |||||||||||||||
| 1T06 | 4T05 | 3T05 | 2T05 | 1T05 | |||||||||||
CURRENT LIABILITIES | |||||||||||||||
Overdrafts | 8,670 | 5,531 | 4,759 | 4,456 | 5,239 | ||||||||||
Accounts payable | 449,169 | 512,924 | 421,070 | 385,536 | 418,214 | ||||||||||
Other accounts payable | 802,696 | 1,087,407 | 1,112,183 | 987,881 | 1,043,349 | ||||||||||
Provision for severance indemnities | 12,305 | 5,132 | 9,749 | 4,452 | 9,912 | ||||||||||
Bank Loans | 235,737 | 235,180 | 225,625 | 304,350 | 165,000 | ||||||||||
Current portion of long-term debt | 123,719 | 44,983 | 49,623 | 49,439 | 89,961 | ||||||||||
Current portion of bonds | 492,479 | 392,628 | 278,100 | 163,977 | 248,977 | ||||||||||
Commercial Papers | 25,000 | 126,900 | 282,900 | 328,185 | 215,000 | ||||||||||
Total Current Liabilities | 2,149,775 | 2,410,685 | 2,384,009 | 2,228,276 | 2,195,652 | ||||||||||
LONG-TERM DEBT | 541,739 | 637,075 | 636,661 | 468,955 | 323,220 | ||||||||||
BONDS | 1,111,200 | 1,193,707 | 710,849 | 822,824 | 749,961 | ||||||||||
GUARANTY DEPOSITS | 76,793 | 83,768 | 106,929 | 105,114 | 103,780 | ||||||||||
DEFERRED TAXES | 593,804 | 667,357 | 785,815 | 843,857 | 935,188 | ||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||
Capital stock | 1,907,139 | 1,924,595 | 1,924,595 | 2,355,086 | 2,355,086 | ||||||||||
Legal reserve | (21,896 | ) | (21,896 | ) | (21,896 | ) | (21,896 | ) | |||||||
Retained earnings | 58,603 | 33,275 | 33,275 | 377,668 | 377,668 | ||||||||||
Other reserves | 315,518 | 273,096 | 167,248 | 83,164 | 36,185 | ||||||||||
| (3,313 | ) | (6,026 | ) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 2,277,947 | 2,203,044 | 2,103,222 | 2,794,022 | 2,747,043 | ||||||||||
TOTAL LIABILITIES AND | |||||||||||||||
SHAREHOLDERS’ EQUITY | 6,751,258 | 7,195,636 | 6,727,485 | 7,263,048 | 7,054,844 | ||||||||||
| 1/ | Starting November 2005 the financial statements of Telefonica del Perú S.A.A. And Subsidiaries include the results of Telefónica Empresas S.A.A. |
| 2/ | Starting January 1, 2005 and in accordance with the Consejo Normativo de Contabilidad by-law N°031-2004, the financial statements will not be adjusted for inflation for accounting matters. |
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TABLE 3
TELEFONICA DEL PERU S.A.A. AND SUBSIDIARIES
Data for each period
| 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 | Var. Abs 1Q06 - 1Q05 | 1Q06/ 1Q05 | ||||||||||
| TELEFONÍA BÁSICA | ||||||||||||||||
Fixed-Wire Telephone Service: Local+Long Distance | ||||||||||||||||
Lines Installed | 2,343,993 | 2,396,113 | 2,455,347 | 2,509,789 | 2,538,949 | 194,956 | 8.3 | |||||||||
New Lines Installed | 48,380 | 46,115 | 49,558 | 46,470 | 37,746 | (10,634 | ) | (22.0 | ) | |||||||
Lines in Service (1) | 2,201,167 | 2,250,663 | 2,302,585 | 2,348,139 | 2,388,836 | 187,669 | 8.5 | |||||||||
Local Traffic - Minutes (000) (2) | 1,260,216 | 1,247,663 | 1,236,312 | 1,205,026 | 1,216,188 | (44,028 | ) | (3.5 | ) | |||||||
Long Distance - Minutes (000) (3) | 267,761 | 286,576 | 294,434 | 329,467 | 319,281 | 51,519 | 19.2 | |||||||||
Number of Employees (Telefónica del Perú and Subsidiaries) (4) | 5,158 | 5,280 | 5,371 | 6,163 | 6,504 | 1,346 | 26.1 | |||||||||
Number of Employees (Telefónica del Perú) | 3,144 | 3,170 | 3,196 | 3,449 | 3,452 | 308 | 9.8 | |||||||||
Lines in Service per Employee (Telefónica del Perú) | 700 | 710 | 720 | 681 | 692 | (8.0 | ) | (1.1 | ) | |||||||
Digitalization Rate (%) | 96.6 | 96.7 | 96.7 | 96.8 | 96.8 | 0.2 | 0.2 | |||||||||
Lines in Service per 100 inhabitants | 8.0 | 8.1 | 8.3 | 8.4 | 8.5 | 0.5 | 6.3 | |||||||||
PUBLIC TELEPHONES | ||||||||||||||||
Lines in Service (5) | 130,980 | 134,423 | 137,226 | 136,486 | 139,499 | 8,519 | 6.5 | |||||||||
INTERNET | ||||||||||||||||
Subscribers (6) | 234,660 | 276,151 | 310,470 | 340,436 | 359,672 | 125,012 | 53.3 | |||||||||
CABLE TV | ||||||||||||||||
Subscribers | 405,959 | 417,535 | 437,172 | 462,211 | 474,710 | 68,751 | 16.9 | |||||||||
| (1) | Excluding Cellular Public Phones, Publifón and rurals |
| (2) | Including traffic F2F billing (voice and internet), F2M and M2F |
| (3) | Excluding Prepaid cards, including packed minutes plans. |
| (4) | Includes personnel of Telefonica Empresas starting October 2005 |
| (5) | Includes Public Telephone, Cellular and Rural Telephones. |
| (6) | Includes Speedy, Speedy Business, GIGA ADSL, Cablenet, and starting 2006, 88 accesses of Fiber Optic. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Telefónica del Perú | ||||
Date: April 28, 2006 | By: | /s/ Mariana Brigneti Suito | ||
| Name: | Mariana Brigneti Suito | |||
| Title: | Legal Director of Telefónica del Perú S.A.A. | |||