Spanish telecom giant Telefónica could move its Latin American headquarters from Madrid to São Paulo. Although rumors say the move is planned, a Telefónica Brazil spokesperson explained to RCR Wireless News that while the company is conducting studies about moving the regional command to Brazil, there is nothing concrete yet.
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Earlier this week, the Spanish newspaper El Pais posted a story noting that Telefónica is planning the move. According to the report, Telefónica managers have come to the conclusion that coordinating and managing Latin American operations under Spanish time is not efficient, and the distance from Madrid also complicates travel to the region.
If it happens, the change would include bringing the president of de Telefónica Latinoamérica, Santiago Fernández Valbuena, to Brazil. Telefónica would then operate from three global centers: Madrid for the European business and corporate services group; London for Telefónica Digital; and São Paulo for Telefónica Latin America.
It makes sense since according to the company’s latest financial results, Telefónica Latinoamérica continues to drive growth, contributing 48% of consolidated revenue and accounting for 50% of the group’s OIBDA (operating income before depreciation and amortization).
Telefónica Latinoamérica’s revenues amounted to U.S.$18.4 billion (€14.963 million) in the first six months of 2012, with 7% year-on-year reported growth. The positive results were attributed to the good performance of mobile service revenue (+12.4% year-on-year in the first six months, +11.5% for the quarter).
(Currency exchange rate at time of report: $1 USD = €0.813432)
