# Don't you feel sorry for Telefonica ...



## Alcalaina (Aug 6, 2010)

... Their profits fell by 45% in the last quarter because of all the redundancy payments they had to shell out. They only managed to scrape together a net profit of 1.33 billion euros! 
:jaw:

Telefonica Profit Drops on Job-Cut Costs, Spanish Woes - Businessweek


----------



## JLD (Feb 25, 2011)

thats really bad i hope they manage to carry on trading!!!! i bet their ex employees were pleased to see those figures.


----------



## Alcalaina (Aug 6, 2010)

JLD said:


> thats really bad i hope they manage to carry on trading!!!! i bet their ex employees were pleased to see those figures.


Even more thrilled than their customers I expect ... 

Looks like the only way to get a good deal from Telefonica is to be a shareholder!


----------



## Beachcomber (May 10, 2009)

I have never understood why news about multinational companies making profits should be the subject of sarcastic or detrimental comment. This is what makes the world go round. 

Perhaps these people would like to abolish capitalism in favour of the outdated notion of communism where nobody has anything and wants to share it with everyone else.


----------



## Alcalaina (Aug 6, 2010)

Beachcomber said:


> I have never understood why news about multinational companies making profits should be the subject of sarcastic or detrimental comment. This is what makes the world go round.
> 
> Perhaps these people would like to abolish capitalism in favour of the outdated notion of communism where nobody has anything and wants to share it with everyone else.


Sounds good to me! :clap2:


----------



## nigele2 (Dec 25, 2009)

Beachcomber you're so brave. 

Standby for capitalists who are living off fat corporate pensions telling you that you are wrong 

ps that amounts to little more than 5000Es per employee!! Even I made more than that


----------



## sat (Jul 20, 2008)

Alcalaina said:


> .They only managed to scrape together a net profit of 1.33 billion euros!


The article states that they had a net income of 1.33bn euros, not a profit of 1.33bn euros. Profit and income are different things.

I am with beachcomber on this one...whats is wrong with a huge multinational company (3rd largest telecomms co in the world) with interests all over the globe (O2 in the UK for example, and most of South America) making money. 
Not all their profit comes from Spain.


----------



## Pesky Wesky (May 10, 2009)

sat said:


> The article states that they had a net income of 1.33bn euros, not a profit of 1.33bn euros. Profit and income are different things.
> 
> I am with beachcomber on this one...whats is wrong with a huge multinational company (3rd largest telecomms co in the world) with interests all over the globe (O2 in the UK for example, and most of South America) making money.
> Not all their profit comes from Spain.


If they shared it out a bit more, gave their employees better conditions and more importantly actually provided a good service for their clients it might be more acceptable.
Personally I think that any company that makes that amount of money is obviously ripping off their customers left right and centre. If they ploughed some of that money back into the company just think how telephone charges - the charges that you and I pay (and don't say that you don't have Telefónica 'cos all roads lead to Rome) - just think how they could/ would/ SHOULD drop.


----------



## nigele2 (Dec 25, 2009)

Pesky Wesky said:


> If they shared it out a bit more, gave their employees better conditions and more importantly actually provided a good service for their clients it might be more acceptable.
> Personally I think that any company that makes that amount of money is obviously ripping off their customers left right and centre. If they ploughed some of that money back into the company just think how telephone charges - the charges that you and I pay (and don't say that you don't have Telefónica 'cos all roads lead to Rome) - just think how they could/ would/ SHOULD drop.


But Pesky that would make them a charity and then their shareholders would desert them. With no money for investment they would be bust within a very few years. Can't see how that will help employees or customers 

Now if you want to argue that they are crap and can only maintain a monopoly based on corruption that's a different matter


----------



## Alcalaina (Aug 6, 2010)

sat said:


> The article states that they had a net income of 1.33bn euros, not a profit of 1.33bn euros. Profit and income are different things.
> 
> I am with beachcomber on this one...whats is wrong with a huge multinational company (3rd largest telecomms co in the world) with interests all over the globe (O2 in the UK for example, and most of South America) making money.
> Not all their profit comes from Spain.


Sorry - I got it wrong. The profit for 2010 was €10.7 billion, not a paltry €1.3 billion.

MADRID (AFP) – Spanish telecoms giant Telefonica posted a record net profit for 2010 Friday as as weakness in Spain was offset by strong growth in the rest of Europe and Latin America. The company said its net profit jumped 30.8 percent last year over 2009 to hit "*a new all-time record" of 10.17 billion euros* ($14 billion) on revenues of 60.7 billion euros, a rise of 7.1 percent over the previous year.
Spain's Telefonica posts record 2010 net profit - Yahoo! News

Making staff redundant in order to increase profits is in my opinion immoral.

Profit is made from selling goods and services at more than they are worth (i.e. the value of materials and labour). If profits are high, somebody further along the line is losing out. In Telefonica's case it is their customers, the companies they have taken over and closed down, and the staff they have sacked.

I have no big problem with a company being profitable, provided it is shared among ALL the workers (not just shareholders), taxes are paid promptly and in full, and a reasonable amount is used in research and development. 

If essential services like telecommunications were owned by the state, that money would be coming back into society rather than making very rich people even richer.


----------



## Pesky Wesky (May 10, 2009)

nigele2 said:


> But Pesky that would make them a charity and then their shareholders would desert them. With no money for investment they would be bust within a very few years. Can't see how that will help employees or customers
> 
> Now if you want to argue that they are crap and can only maintain a monopoly based on corruption that's a different matter


I'm not talking about investing all of their money back into the business, I'm just saying make the business do what they say it will do. Make the business do what you are paying for ie solve the problems with the lines, improve coverage etc And make prices more reasonable. Spain is famous for having one of the highest if not the highest phone and internet charges in Europe. With that kind of background how dare they make so much profit!!! True the profit is not the amount quoted by Alacalaina, but this is the headline from their own web page at
Telefónica - Press Office - News - Telefónica’s net profit up 30.8% in 2010, to 10,167 million euros

*Telefónica’s net profit up 30.8% in 2010, to 10,167 million euros*


That, to my way of thinking is _*OUTRAGEOUS *_and_* INDECENT*_!!



Of course not everyone thinks the same. Some people are even queuing for the priviledge to give Timofónica their life savings to guarantee their access to the telephone lines in the future.


----------



## nigele2 (Dec 25, 2009)

Alcalaina said:


> If essential services like telecommunications were owned by the state, that money would be coming back into society rather than making very rich people even richer.


You want the Spanish government to look after communication? 

As an organisation (the government of Spain) they have proved to be disastrous steadily destroying Spain. How does that make them qualified to run anything? For sure no money would ever get back to society


----------



## Trubrit (Nov 24, 2010)

*We brits hate success!*



Pesky Wesky said:


> I'm not talking about investing all of their money back into the business, I'm just saying make the business do what they say it will do. Make the business do what you are paying for ie solve the problems with the lines, improve coverage etc And make prices more reasonable. Spain is famous for having one of the highest if not the highest phone and internet charges in Europe. With that kind of background how dare they make so much profit!!! True the profit is not the amount quoted by Alacalaina, but this is the headline from their own web page at
> Telefónica - Press Office - News - Telefónica’s net profit up 30.8% in 2010, to 10,167 million euros
> 
> *Telefónica’s net profit up 30.8% in 2010, to 10,167 million euros*
> ...



Why do Brits hate success so much ? It seems like a nasty trait of the British people whereas success should be applauded and welcomed. We seem to love it when companies collapse, I find it all a little strange.


----------



## Pesky Wesky (May 10, 2009)

Trubrit said:


> Why do Brits hate success so much ? It seems like a nasty trait of the British people whereas success should be applauded and welcomed. We seem to love it when companies collapse, I find it all a little strange.


I hope you're not referring to me by using the quote button. I would find that a little strange...
I'm happy with success Trubrit, my own and others. I'm not happy with fatcats and ripoffs which is what Telefónica is IMO.


----------



## Alcalaina (Aug 6, 2010)

Trubrit said:


> Why do Brits hate success so much ? It seems like a nasty trait of the British people whereas success should be applauded and welcomed. We seem to love it when companies collapse, I find it all a little strange.


Success, to me, is providing a good service. When Telefonica stop diverting my landline to a non-existent number so my mother can't phone me, stop charging me 60 cents a minute to report the fault caused by them, and then actually apologise for doing it (a refund might be nice!), I might feel a little more benevolent towards them.

People who prioritise profits over quality are the ones I find strange.


----------



## Beachcomber (May 10, 2009)

The dividend on my Telefónica shares more than covers my annual telephone bills so the more money they make the better.


----------



## 90199 (Mar 21, 2010)

I have used Telefonica for a number of years, I cannot fault them, Telephone, Internet, Television a good service with a wonderful back up team for when we get things wrong or wires get blown down.

So if they make a profit, so be it, when I had my own business I made sure I made one,

Hepa


----------



## Alcalaina (Aug 6, 2010)

nigele2 said:


> You want the Spanish government to look after communication?
> 
> As an organisation (the government of Spain) they have proved to be disastrous steadily destroying Spain. How does that make them qualified to run anything? For sure no money would ever get back to society


I wasn't just talking about Spain, but the general principle. The state doesn't have to run it, just be the sole shareholder so the profits don't end up in the hands of individuals who employ teams of accountants to make sure they pay as little tax as they can get away with.

And because the state is accountable to the electorate, the service might improve too!


----------

