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From: Compañía Anónima Nacional For Release: FOR IMMEDIATE RELEASE Teléfonos de Venezuela (CANTV) (NYSE: VNT) Contact: CANTV Investor Relations Department Avenida Libertador 011-58-212-500-1831(Master) Centro Nacional de Telecomunicaciones FAX: 011-58-212-500-1828 Caracas, Venezuela Email: invest@cantv.com.ve February 18, 2004 Mariana Crespo The Global Consulting Group 646-284-9407 Email: mcrespo@hfgcg.com CANTV ANNOUNCES FOURTH QUARTER 2003 AND FULL YEAR 2003 RESULTS AND 2004 GUIDANCE Better-than-Expected Fourth Quarter Results, achieving an EBITDA margin of 39% and a Net Income of Bs. 68.0 billion. Full Year Results on the Upper Range Limit of Revised Guidance with Free Cash Flow of Bs. 954.7 billion, EBITDA margin of 36% and a Net Income of Bs. 29.8 billion. Free Cash flow reached Bs. 954.7 billion for the year ended December 31, 2003, a 71.6% year-over-year increase. Net cash position increased to Bs. 328.0 billion, net of a Bs 275.5 billion dividend payment in December 2003 compared to a net cash position of Bs. 60.1 billion in December 2002. Fourth quarter 2003 consolidated revenues in constant bolivars increased 2.4% compared to the fourth quarter of 2002, while full year 2003 revenues decreased 6.3% compared to the prior year. Data and Internet revenues continued to post strong growth, increasing 15.5% and 17.9%, respectively, from the fourth quarter of 2002, a 32.9% and 17.4% year-over-year increase. Internet subscribers totaled almost 232,000 at year-end 2003 reflecting a 6.1% sequential increase from the previous quarter of 2003, and an 18.6% year-over-year increase. Wireless subscribers posted a strong 9.2% sequential growth rate over the third quarter and the customer base grew to 2.7 million, a 4.7% year-over-year increase. Our ABA (ADSL) customer base continued to experience healthy growth, increasing 15.1% sequentially and 64.0% year-over-year. Year-end subscribers reached around 77,000. Adjustments to regulated tariffs for non-residential, public telephones, Domestic Long Distance and residential and non-residential fixed to mobile services were approved by CONATEL during 2003. However, residential tariffs remained unchanged pending for regulatory approval. The weighted average tariff increase for all services was 22% in 2003. The Company successfully obtained approvals from CADIVI to acquire a total of US$102.8 million during 2003, US$53.6 million in prior quarters and US$49.2 million during the fourth quarter of 2003 at the then official exchange rate of Bs. 1,600 per US$1. On January 26, 2004, CADIVI approved an additional US$119.2 million at the then official exchange rate of Bs. 1,600 per US$ for scheduled payments of CANTV s outstanding debt, including US$104.6 million of its Yankee bonds. CADIVI authorized on February 13, 2004 the conversion of the Bolivars resulting from the dividend payment of December 19, 2003, to US Dollars to CANTV s foreign investors, at the exchange rate of Bs. 1,920.00 per US$1. Financial results presented are stated in accordance with Venezuelan GAAP. Bolivar amounts have been adjusted for inflation and translated into US dollars, solely for the convenience of the reader, at the rate of Bs. 1,600 per US$1, the daily official exchange rate as of December 31, 2003. 1

Bolivars (Billions, except per ADS amounts) 4Q03 FINANCIAL HIGHLIGHTS Quarters US$ (Millions) 4Q02 4Q03 4Q02 % Inc. (decr.) Bolivars (Billions, except per ADS amounts) Full year US$ (Millions) 2003 2002 2003 2002 % Inc. (decr.) Revenues 853.4 833.1 533 521 2.4 3,191.3 3,404.5 1,995 2,128 (6.3) EBITDA 329.7 246.2 206 154 33.9 1,154.0 1,233.8 721 771 (6.5) EBITDA Margin 39% 30% 39% 30% 900bps 36% 36% 36% 36% - Net income (loss) 68.0 (3.2) 42 (2) NM 29.8 85.0 19 53 (65.0) Earnings (loss) per ADS 613 (29) 0.38 (0.02) NM 269 766 0.17 0.48 (65.0) Free Cash Flow 954.7 556.3 597 348 71.6 NM= Not meaningful KEY OPERATING INDICATORS 4Q 03 3Q 03 4Q 02 %Inc. (decr) 4Q03 vs. 3Q03 4Q03 vs. 4Q02 Wireline * 2,733,909 2,679,154 2,705,363 2.0 1.1 Residential - postpaid 1,672,018 1,697,806 1,778,914 (1.5) (6.0) Residential - prepaid 314,585 246,116 191,634 27.8 64.2 Non-residential - postpaid 563,660 563,119 583,605 0.1 (3.4) Non-residential - prepaid 14,788 13,861 14,129 6.7 4.7 Public telephones 92,011 91,500 90,211 0.6 2.0 ABA ADSL lines 76,847 66,752 46,870 15.1 64.0 Wireless subscribers 2,681,074 2,454,158 2,560,718 9.2 4.7 Internet subscribers 231,938 218,654 195,616 6.1 18.6 (*)Access lines in service Summary of Operating results Wireline Total access lines grew 1.1% to 2.7 million yearover-year from 2002. The Company successfully added 45,077 customers in 2003 as a result of its new fixed-wireless services, including Cantv Listo (Cantv Ready), fuelling the recovery of total lines in service which grew 2.0% sequentially in the final quarter of 2003, most of whom are prepaid customers, and actively increased the installation of lines with credit limits to allow our customers to better control their usage. The Company has also continued a program to selectively migrate certain postpaid residential lines to prepaid lines based on our customers payment capacity. Access lines (in thousands) 92 2,734 2,706 90 77 47 329 206 564 584 1,672 2003 P. telephones ADSL Prepaid Non-residencial Residencial 1,779 2002 2

The continuing economic recovery and expected seasonal impacts experienced during the last quarter, primarily impacted our non-residential customers and were reflected in the net increase of local bundled and unbundled minutes of use (MOUs). Fourth quarter 2003 combined local bundled and unbundled MOUs totaled 3,422 million resulting in a sequential increase of 8 million from the previous quarter. Local unbundled MOUs decreased by 8.3% from the fourth quarter of 2002, reflecting lower average non-residential unbundled MOUs per line of 1.8% and a 3.6% decline in residential unbundled MOUs per line. Local bundled MOUs decreased by 3.9% over the fourth quarter of 2002 mainly due to a 9.6% decrease in non-residential unbundled MOUs. Unbundled minutes (in millions) 13,972 15,551 Year-over-year MOUs results still reflect the 1,109 Interc. Incoming impact of the country s 2003 economic slump. 1,421 2,221 Fixed to mobile Combined Local bundled and unbundled MOUs 1,763 1,593 posted during 2003 decreased 1,246 million 1,286 DLD (8.4%) to 13,625 million compared to the volume Local posted in 2002. Local unbundled MOUs decreased 10,628 1,126 million or 10.6% to 9,502 million in 2003 9,502 3,573 3,540 3,880 426 369 332 from 10,628 million in 2002, reflecting decreases 441 437 526 407 307 339 2,399 2,395 2,615 of 5.9%, 15.1% and 18.3% in residential, nonresidential and public telephones and Telecommunication Centers, respectively. Local residential and non-residential unbundled MOUs 2003 2002 4Q03 3Q03 4Q02 per line decreased 2.4% and 9.8%, respectively. Local bundled MOUs decreased 120 million to 4,123 million in 2003 compared to 4,243 million in 2002, mainly driven by lower postpaid residential customer and lower MOUs per line of 14.7%. In comparison to the volumes posted during the fourth quarter of 2002, total fourth quarter 2003 Bundled minutes (in millions) Local bundled and unbundled billed MOUs declined 3,835 by 257 million MOUs or 7.0%. Total Local Local Res 3,496 bundled MOUs decreased by 41 million (3.9%) to 1,023 million, mainly driven by lower residential average MOUs per line of 4.1%, as well as the Local Non-res DLD lower customer base. Total Local unbundled MOUs decreased by 216 million (8.3%) to 2,399 million, 1,085 1,029 923 reflecting a decrease of 127 million in residential 834 846 627 (8.6%), 43 million in non-residential (5.0%) and 408 189 263 173 273 141 265 46 million in public telephones and Telecommunication Centers (16.4%). The decrease in residential unbundled MOUs was mainly driven by a 3.6% reduction in average 2003 2002 4Q03 3Q03 4Q02 MOUs per line and lower residential lines. The reduction in average MOUs per line is attributable to the popularity of lower tariff plans that include fewer minutes while the residential lines variance was driven, in part, by disconnections due to non-payment. The decline in non-residential MOUs was primarily attributable to the postpaid line reduction and customers migrating to flat rate plans. The number of non-residential customers subscribing to flat rate plans reached 11,724 in the fourth Average real rates (in constant Bs.) quarter of 2003, a 20.9% increase compared to Local DLD F - M Local F - M DLD ILD the fourth quarter of 2002. 550 Public telephony minutes during the fourth quarter decreased 3.8% compared to the previous quarter as a result of our customers using other communication alternatives, such as wireless, and the illegal rental of fixed wireless phones or wireless handsets. The Company is also facing competition in the Telecommunication Center franchises from another operator. The Company is implementing a set of initiatives to curb this 341 339 444 168 175 34 36 4Q03 308 4Q02 456 3

trend including: (i) fostering the growth in the number of Telecommunication Centers by enhancing our franchise agreement, and (ii) deployment of a new public telephone technology in 2004 that will allow our customers access to a wider range of services via the Company s UN1CA prepaid cards, instead of the chip card currently used. As of December 2003, CANTV had 454 Telecommunication Center franchises, an 8.1% increase over December 2002. Blended Local average real rates decreased 14.9% and 6.0% in 2003 and the fourth quarter of 2003, respectively, compared to the full year and fourth quarter of 2002. The declines resulted from the absence of residential segment tariff increases as well as non-residential tariff increases that did not fully offset the effects of inflation. Sequentially, combined Domestic Long Distance (DLD) bundled and unbundled MOUs decreased by 6.9%. This decrease was driven by lower average DLD MOUs per line of 12.7% in residential, 11.0% in non-residential and 4.6% in public telephones and Telecommunication Centers. Total bundled and unbundled DLD MOUs decreased by 251 million or 9.6% to 2,371 million in 2003, compared to 2,622 million in 2002. Total residential bundled and unbundled DLD MOUs decreased by 73 million or 4.8%, to 1,457 million in 2003 from 1,530 million in 2002. Unbundled residential DLD MOUs decreased by 129 million due to a 23.5% decrease in DLD MOUs per line while bundled residential MOUs increased by 56 million (5.4%) despite a reduction of 34,222 customers subscribed to our Nights and Weekends plan. Non-residential unbundled DLD MOUs decreased by 83 million (12.5%) due to a 9.6% decline in average MOUs per line. Public telephones and Telecommunication Centers volumes decreased by 95 million MOUs (22.2%) versus 2002 driven by our customers using other communication alternatives, such as wireless, and the illegal rental of fixed wireless phones or wireless handsets. Compared to the fourth quarter of 2002, total bundled and unbundled DLD MOUs decreased by 102 million to 570 million or 15.2% in the fourth quarter of 2003. Due to both lower MOUs per line and access lines, total residential DLD bundled and unbundled MOUs decreased by 49 million (12.2%) to 352 million compared to the 401 million posted in the fourth quarter of 2002. Unbundled DLD residential MOUs, decreased by 47 million (34.6%) to 89 million due to a 30.4% decrease in average MOUs per line. Unbundled DLD non-residential MOUs decreased 11.3% to 141 million mainly resulting from a 5.2% decrease in average MOUs per line, a lower non-residential customer base due to business closures, our customers implementation of cost containment measures such as call blocking and the lower rates offered by our competitors. Blended DLD average real rates decreased 6.8% and 4.1% in 2003 and the fourth quarter of 2003, respectively, from the full year and fourth quarter of 2002, respectively, driven by the absence of residential segment tariff increases and insufficient non-residential segment tariff increases to fully offset inflation. The Company continues to offer Nights and Weekends plans to reduce migrations to our competitors prepaid cards. Sequentially, ILD outgoing MOUs increased by 12.0% mainly due to traffic increases associated with lower real rates of 6.7%. Billed International Long Distance (ILD) outgoing MOUs increased to International long distance 56 million (7.7%) during the fourth quarter of 2003 compared to the same period in 2002. Outgoing min. Billed Incoming /outgoing ratio The incoming to outgoing ratio decreased to 0.93 in the fourth quarter of 2003 compared to 200 1.2 1.04 in the third quarter of 2003 and to 0.95 in 150 0.8 the fourth quarter of 2002. Incoming MOUs for 100 the fourth quarter of 2003 remained flat at 53 0.4 50 million while outgoing MOUs increased 1 million 0 0 to 57 million compared to the fourth quarter of 2002. For the full year, ILD outgoing MOUs 2003 2002 decreased by 7 million (3.3%) to 205 million compared to the 212 million recorded in 2002. ILD average real rates decreased 23.2% and 19.2% in 2003 and the fourth quarter of 2003, respectively, when compared to the full year 2002 and fourth quarter of 2002, respectively as a result of discounts offered in different plans. 4

Compared to the third quarter of 2003, total Local Fixed to Mobile MOUs increased by 3 million (1.0%) due to higher residential and non-residential MOUs per line of 6.2% and 1.8%, respectively; and DLD Fixed to Mobile increased by 1 million (0.7%) as a result of increases in residential and non-residential MOUs per line of 8.6% and 4.6%, respectively. For the full year 2003, Local Fixed to Mobile MOUs decreased by 380 million (23.7%) to 1,223 million compared to the volume posted in 2002. DLD Fixed to Mobile MOUs decreased by 78 million (12.6%) to 540 million in 2003 compared to 618 million in 2002. Beginning April of 2003, Local and DLD Fixed to Mobile tariffs were consolidated and the rate structure for the two services became identical, resulting in a higher local tariff and a lower DLD tariff. In addition, DLD Fixed to Mobile MOUs are now rounded to whole minutes instead of actual minutes elapsed for residential and non-residential services resulting in higher residential and non-residential DLD MOUs effective April 2003. As a result of these changes, fourth quarter 2003 Local Fixed to Mobile MOUs decreased by 19.9% while DLD Fixed to Mobile MOUs only decreased by 6.7% as compared to the fourth quarter 2002. This DLD Fixed to Mobile decrease was driven by a 53.0% decrease in DLD Fixed to Mobile Public Telephony MOUs due to customers reaction to an 11.5% increases in nominal rates, largely offset by increases of 29.7% and 29.8% in residential and non-residential DLD Fixed to Mobile MOUs. For the full year 2003, Local Fixed to Mobile average real rates increased 7.1%, compared to 2002. DLD Fixed to Mobile average real rates decreased by 16.5% from the full year 2002. Local Fixed to Mobile average real rates increased 10.8% and DLD Fixed to Mobile average real rates decreased by 25.8% in the fourth quarter of 2003 from the fourth quarter of 2002. Sequentially, Interconnection incoming MOUs increased 15.4% from the third quarter of 2003. For the full year 2003, Interconnection incoming MOUs increased 28.1% from 2002 and 28.3% in the fourth quarter of 2003 compared to the same quarter in 2002. These increases were mainly driven by increased traffic from other fixed operators, mainly from other fixed wireless and ILD operators. ABA ADSL lines increased 15.1% in the fourth quarter of 2003 from the third quarter of 2003, while analog and digital circuits decreased by approximately 1.5% mainly due to the wider availability of ABA. Additionally, CANTV is proactively offering the re-allocation of links as well as integrated solutions with the same pricing plans. Year-over-year there was a 64.0% increase in ABA ADSL lines, while analog circuits and Digital Private Lines decreased by 4.8%. Wireless Wireless subscribers increased by 120,356 (4.7%) to approximately 2.7 million, reflecting Wireless subscribers (in thousands) a 5.1% increase in prepaid customers while postpaid customers essentially remained flat, decreasing slightly 0.2% year-over-year from 2,681 201 2,561 2002. Most of the 2003 growth occurred during the fourth quarter with a sequential 201 increase of 9.2%. This growth was generated 2,480 by several promotions and the implementation Postpaid of new plans during 2003, including, among 2,360 others, Pégate con más (Connect with more) Prepaid plan, Pégate Durísimo (Fully Connected) 2003 2002 plan and Navidad 2003 (Christmas 2003) promotion. The Christmas promotion fuelled most of the fourth quarter growth and offered handsets at prices below competitors as well as a 50% reduction on the first month access rate. Beginning in August 2003, the Pégate Durísimo plan was launched for both prepaid and postpaid customers, offering airtime measured in seconds, free SMS and voice message service at a flat rate. As of December 31, 2003, 505,875 prepaid customers and 22,588 postpaid customers had subscribed to this plan. The Pégate con más plan provides our customers additional bundled minutes and lower prepaid rates per MOU. 58,945 postpaid and 111,109 prepaid customers subscribed to this plan as of the end of December 31, 2003. 5

Sequentially, MOUs (outgoing and incoming) increased by 10.5%, driven by a 9.5% increase in prepaid subscribers added during the fourth quarter promotion. SMS messages decreased 19.4% in the fourth quarter of 2003 from the third quarter of 2003 as a result of customers reaction to the Bs. 5 charged per message under the previously unlimited prepaid plan beginning in June 2003. The Company introduced this charge to prevent traffic congestion and increase revenues. 2,344 Wireless minutes of use (in millions) 2,271 Incoming Billed MOUs (outgoing and incoming) increased by 3.2% to 2,344 million for the full year 2003 980 Outgoing 1,195 and by 22.6% to 683 million in the fourth quarter of 2003, respectively, primarily due to the increase in prepaid MOUs generated by the 683 618 557 1,364 new rate plans, partially offset by a decrease in 1,076 238 231 299 postpaid minutes attributable to the lower 445 387 258 customer base and incorporation of more bundled minutes in their rate plans. Billed 2003 2002 4Q03 3Q03 4Q02 average MOUs per postpaid customer decreased by 25.3% in 2003 compared to the full year 2002 and 22.8% in the fourth quarter of 2003 compared to the fourth quarter of 2002 due to our customers reaction to the nominal price increases. Flat rate plans bundled minutes, however, increased by 5% in 2003 compared to the full year 2002, and 24% in the fourth quarter of 2003 compared to the fourth quarter of 2002. Billed average MOUs per prepaid customer increased 52.9% in full year 2003 and 151.4% in the fourth quarter of 2003, mainly as a result of the Pégate con más and the Pégate Durísimo plans introduced in November 2002 and August 2003, respectively. SMS messages continued to gain popularity, increasing by 190.5% to 4,563 million, and by 127.4% to 1,039 million, for the full year 2003, and in the fourth quarter of 2003, respectively, including both billed and free messages. Wireless market share at December 2003 increased to 41.7% from 40.7% in December 2002. This growth resulted from capturing an average share of new adds of approximately 45%. Internet Internet subscribers reached 231,938 customers in the fourth quarter of 2003 compared to 218,654 at the end of the third quarter of 2003 (a 6.1% increase) and 195,616 subscribers at the end of the fourth quarter of 2002 (a 18.6% increase). Internet subscribers and users (in thousands) 1,143 964 232 Subscribers 196 Users 2003 2002 6

Summary of Financial results Revenues Consolidated operating revenues increased by Bs. 20.3 billion (2.4%) to Bs. 853.4 billion in the fourth quarter of 2003, compared to the fourth quarter of 2002, reflecting increases in data revenues of 15.5%, wireless services of 46.8%, Internet revenues of 17.9% and other telecommunications-related services of 8.7%. Data revenues continued to increase due to our growing ABA services combined with average real data rates increases of 28.1%. Other wireline-related services also increased mainly due to call blocking and caller ID services. These increases were partially offset by a decline in Local services (6.6%), DLD (24.7%), ILD (19.1%) and Fixed to Mobile revenues (16.8%) mainly due to volume decreases. Revenues (in billions of Bs.) Sequentially, operating revenues increased 3,191 3,404 by 7.8%, reflecting increases in Local 110 Internet + other Services (1.2%), Fixed to Mobile (3.6%), 122 725 Interconnection incoming (31.9%), data 783 Wireless revenues (7.7%), other wireline-related Wireline services (1.0%), wireless services (25.6%), Internet revenues (4.6%) and other telecommunications-related services 2,569 2,286 853 792 833 (117.0%). The improvement was mainly 30 24 26 240 191 164 attributable to the expected seasonal 583 577 643 impacts and other telecommunicationsrelated services growth was driven by increases in our directories revenues due to 2003 2002 4Q03 3Q03 4Q02 the publication of several regional directories in the fourth quarter. For the fourth quarter 2003, Local services, Fixed to Mobile and wireless services represented 26.6%, 17.2% and 28.1%, respectively, of total revenues compared to 29.1%, 21.2% and 19.6%, respectively, of total revenues in the fourth quarter of 2002. Consolidated operating revenues for the full year 2003 decreased by Bs. 213.2 billion (6.3%) to Bs. 3,191.3 billion from 3,404.5 billion in 2002. This result was primarily attributable to the absence of 2003 residential tariff increases, and non-residential tariffs adjustments lagging inflation, volume decreases, the ongoing shift of customers to flat- rate plans and declining residential and nonresidential postpaid access lines. 2003 Local services, DLD, ILD and Fixed to Mobile revenues decreased 11.2%, 21.9%, 25.2% and 21.9%, respectively, versus 2002. The 2003 growth in data (Bs. 71.2 billion or 32.9%), other wireline-related services (Bs. 10.3 billion or 10.3%), wireless services (Bs. 57.9 billion or 8.0%) and Internet revenues (Bs. 11.2 billion or 17.4%) partially offset the previous revenue declines. Operating Expenses Total operating expenses decreased by Bs. 74.8 billion (8.8%) in the fourth quarter 2003, compared to the fourth quarter of 2002, as a result of the Company s continuing costs control efforts. Decreases in operations, maintenance, repairs and administrative expenses of 4.3% were driven by a 5.4% reduction of in the number of total employees and lower agent commissions stemming from renegotiated contracts. These cost reductions were partially offset by material costs, contractor expense and software maintenance increases. Increased material costs were 3,071 1,033 183 Operating Expenses (in billions of Bs.) 3,269 1,098 253 1,410 1,493 773 D&A Concession & other taxes Operations, maintenance, repairs & Adm. Uncollectible + Interc. 768 848 249 265 261 50 34 72 384 368 401 445 425 90 101 114 2003 2002 4Q03 3Q03 4Q02 7

largely a result of higher wireless handset sales while the contractor expense increases were related to the call centers manpower requirements. Interconnection cost decreased by Bs. 18.0 (20.6%) billion due to average real rates decreases of 12.7% offset by volume increases. Concession and other taxes decreased by 30.4% due to a lower taxable base. Depreciation and amortization decreased by Bs. 11.7 billion as a result of certain assets reaching the end of their useful lives. Sequentially, operating expenses increased by Bs. 5.6 billion, reflecting increases in operations, maintenance, repairs and administrative expenses of Bs. 16.2 billion mainly related to material expenses, plus Concession and other taxes expenses of Bs. 16.2 billion due to the favorable taxable base adjustment recorded during the third quarter of 2003. Depreciation and amortization decreased by Bs. 15.8 billion due to Bs. 22.5 billion recorded in the third quarter of 2003 as a result of certain assets retired whose depreciation was accelerated. 2003 operating expenses of Bs. 3,070.8 billion decreased by Bs. 198.1 billion (6.1%) compared to Bs. Bs. 3,268.9 billion in 2002, mainly due to decreases in operations, maintenance, repairs and administrative expenses of 5.6%, concession and other taxes of 27.7% and depreciation and amortization expenses of 5.9%. EBITDA EBITDA and EBITDA margin for the fourth quarter of 2003 were Bs. 329.7 billion and 39%, respectively, compared to the Bs. 246.2 billion and 30% reported for the fourth quarter of 2002. EBITDA and EBITDA margin for the full year 2003 were Bs. 1,154.0 billion and 36% compared to the Bs. 1,233.8 billion and 36% reported for the same period in 2002. Other expense, net For the fourth quarter of 2003, the Company recorded Other expense, net of Bs. 3.6 billion, mainly driven by a loss from net monetary position of Bs. 15.8 billion, partially offset by interest income of Bs. 21.2 billion. Other income, net of Bs. 12.8 billion was recorded in the fourth quarter of 2002, primarily due to a gain form net monetary position of Bs. 11.2 billion in the fourth quarter of 2002. Other expense, net of Bs. 54.5 billion was recorded in the full year of 2003 compared to Bs. 19.9 billion posted in 2002. The increase in 2003 expense is primarily attributable to a Bs. 38.8 billion loss recorded from the sale of US-dollar-denominated Venezuelan Government Bonds acquired in August 2003 and settled with an average discount of 31%. The acquisition and sale were effected to guarantee CANTV access to adequate foreign currency to transact business. The Company also recorded Interest expense of Bs. 36.3 billion and an Exchange loss of Bs. 45.0 billion that were partially offset by interest income of Bs. 61.6 billion and a gain from net monetary position of Bs. 3.2 billion in 2003. Income Tax Income tax expense of Bs. 35.6 billion was recorded for the full year 2003 compared to Bs. 29.8 billion recorded in 2002 mainly due to lower 2003 income tax credits and the loss from the sale of US$ denominated bonds which was non-deductible. Taxes in Venezuela are calculated and paid for on the basis of historical bolivar statements, including an inflation adjustment component. Net Income For the fourth quarter of 2003, net income of Bs. 68.0 billion and earnings per ADS of Bs. 613 (US$0.38) was recorded compared to the 2002 fourth quarter net loss of Bs. 3.2 billion and loss per ADS of Bs. 29 (US$0.02). The Company generated Net income of Bs. 29.8 billion and Earnings per ADS of Bs. 269 (US$0.17) in 2003 compared to the Bs. 85.0 billion of net income or earnings per ADS of Bs. 766 (US$0.48), recorded in 2002, a decline of 65.0%. Free Cash Flow Free cash flow reached Bs. 954.7 billion in the year ended December 31, 2003 compared to Bs. 556.3 billion in 2002, mainly as a result of an 78.3% year-over-year reduction in capital expenditures of Bs. 398.6 billion. Restatement of Financials As previously announced in our Second Quarter 2003 earnings release, our 2002 income statements, balance sheets and cash flow statements have been restated to reflect the adoption of IAS 19 and the consolidation of the Employee benefits fund. 8

Other developments Tariffs An average 19% rate increase for fixed to fixed services for the non-residential regulated segment became effective on April 27, 2003, and was implemented in April, July and October of 2003. Additionally, three extraordinary adjustments to compensate for differences between actual and forecasted macroeconomic assumptions of 2%, 4% and 5% were approved and made effective in July, October and January of 2004, respectively. As part of the negotiation with the regulator, a new charge per call of Bs. 28 was approved for non-residential local fixed to fixed service in April 2003. In addition, a single tariff for both residential and non-residential fixed to mobile service was introduced during this negotiation and was effective April 27, 2003. Under this new tariff, local Fixed to Mobile residential and non-residential tariffs increased while Fixed to Mobile DLD tariffs decreased. This new tariff stipulates that DLD Fixed to Mobile minutes are rounded to whole minutes instead of the actual time elapsed. Residential tariffs have remained unchanged as our submitted requests are pending CONATEL s approval. The weighted average tariff increase for all services was 22%. Exchange control The Exchange Control Regime established by the Government on January 21, 2003, remains in force and further amendments to the initial rules were approved after its February 2003 implementation. Although the Government has approved some requests for foreign currency exchanges at the official rate, access to foreign currency is still significantly restricted. As of the date of this release, the Company had received approvals to acquire US$53.6 million in prior quarters and US$49.2 million during the fourth quarter of 2003, for a total of US$102.8 million, of which US$18.5 million was approved for interest and debt payments and US$84.3 million for payments for foreign goods and services. The Company continues to seek approvals for foreign currency from the Government s Foreign Currency Administration Commission (CADIVI). As of December 31, 2003, CADIVI had approved US$24.1 million for the conversion of bolivars to US dollars for repatriation of dividends paid in 2003. This approval was obtained in September 2003 for the March 2003 dividend. In February 2004 CADIVI approved US$113.9 million for the conversion of bolivars to US dollars resulting from the December 2003 dividend. On January 26, 2004, CANTV received approval from CADIVI to acquire US$119.2 million to make debt payments related to US$104.6 million Yankee Bonds and US$14.6 for interest payments related to the US$25 million loan with the International Finance Corporation and Yen-denominated debt. On February 6, 2004, the official exchange rate was modified from Bs. 1,600 per US$1 to Bs. 1,920 per US$. Dividends The Company paid a dividend of Bs. 350 per share (Bs. 2,450 per ADR) on December 19, 2003, as approved by shareholders at an extraordinary shareholders meeting held on December 2, 2003. This dividend payment totaled Bs. 275.5 billion, and its conversion to US$ was approved on February 13, 2004 at the now official exchange rate of Bs. 1,920.00 per US$1. Treasury shares The extraordinary shareholders meeting held on December 2, 2003, also approved the reduction from capital stock of the 138,896,536 treasury shares acquired during the Third Repurchase program completed in November 2001. Currently, CANTV is in the process of formally retiring and canceling these shares. 9

Income statement Data For the quarters ended December 31, 2003 and 2002 (Adjusted for inflation and expressed in millions of constant bolivars as of December 31, 2003, and millions of US dollars, except per share amounts) 2003 2002 2003 2002 (Decrease) Operating Revenues (Restated) (Restated) Local services 226,634 242,538 142 152 (6.6%) Domestic long distance usage 61,619 81,803 38 51 (24.7%) Total local and domestic long distance 288,253 324,341 180 203 (11.1%) International long distance 24,050 26,891 15 17 (10.6%) Net settlements 396 3,334-2 (88.1%) Total international long distance 24,446 30,225 15 19 (19.1%) Fixed to mobile Outgoing 146,876 176,496 92 110 (16.8%) Interconnection incoming 19,614 18,249 12 11 7.5% Data revenues 77,449 67,033 48 42 15.5% Other wireline-related services 26,751 27,121 18 17 (1.4%) Total data revenues and other wireline-related services 104,200 94,154 66 59 10.7% Total wireline services 583,389 643,465 365 402 (9.3%) Wireless services 240,167 163,641 150 102 46.8% Internet revenues 20,160 17,100 13 11 17.9% Other telecommunications-related services 9,714 8,937 5 6 8.7% Total operating revenues 853,430 833,143 533 521 2.4% Operating Expenses Provision for Uncollectibles 20,477 26,727 13 17 (23.4%) Operations, maintenance, repairs and administrative 384,082 401,179 240 251 (4.3%) Interconnection cost 69,180 87,171 43 54 (20.6%) Concession and other taxes 50,025 71,857 31 45 (30.4%) 523,764 586,934 327 367 (10.8%) EBITDA 329,666 246,209 206 154 33.9% EBITDA Margin 39% 30% 39% 30% 900bps Depreciation and amortization 249,401 261,073 156 163 (4.5%) Total operating expenses 773,165 848,007 483 530 (8.8%) Operating Income (Expense) 80,265 (14,864) 50 (9) (640.0%) Other (Expense) Income, net Interest income 21,176 15,325 13 9 38.2% Interest expense (7,954) (9,934) (5) (6) (19.9%) Exchange loss, net (6,327) (6,973) (4) (4) (9.3%) (Loss) gain from net monetary position (15,811) 11,188 (10) 7 (241.3%) Net financing cost (8,916) 9,606 (6) 6 (192.8%) Other 5,358 3,230 4 2 65.9% (3,558) 12,836 (2) 8 (127.7%) Income (Loss) before Income Taxes 76,707 (2,028) 48 (1) NM Income Tax 8,744 2,129 6 2 310.7% Minority Interests income (4) (932) - (1) NM Net Income (Loss) 67,967 (3,225) 42 (2) NM Earnings (Loss) per Share 88 (4) 0.054 (0.003) NM Earnings (Loss) per ADS (based on 7 shares per ADS) 613 (29) 0.38 (0.02) NM Average Shares Outstanding (in millions) 776 776 776 776 10

Income statement Data For the years ended December 31, 2003 and 2002 (Adjusted for inflation and expressed in millions of constant bolivars as of December 31, 2003, and millions of US dollars, except per share amounts) Bs. Bs. US$ US$ % Increase 2003 2002 2003 2002 (Decrease) Operating Revenues (Restated) (Restated) Local services 885,441 997,478 553 623 (11.2%) Domestic long distance usage 252,132 322,796 158 202 (21.9%) Total local and domestic long distance 1,137,573 1,320,274 711 825 (13.8%) International long distance 97,874 127,876 61 80 (23.5%) Net settlements 11,630 18,425 7 11 (36.9%) Total international long distance 109,504 146,301 68 91 (25.2%) Fixed to mobile Outgoing 568,190 727,406 356 455 (21.9%) Interconnection incoming 72,692 58,568 45 37 24.1% Data revenues 287,554 216,311 180 135 32.9% Other wireline-related services 110,379 100,056 69 63 10.3% Total data revenues and other wireline-related Services 397,933 316,367 249 198 25.8% Total wireline services 2,285,892 2,568,916 1,429 1,606 (11.0%) Wireless services 783,288 725,373 490 453 8.0% Internet revenues 75,791 64,556 47 40 17.4% Other telecommunications-related services 46,299 45,618 29 29 1.5% Total operating revenues 3,191,270 3,404,463 1,995 2,128 (6.3%) Operating Expenses Provision for Uncollectibles 87,685 88,354 55 55 (0.8%) Operations, maintenance, repairs and administrative 1,409,457 1,492,701 882 933 (5.6%) Interconnection cost 357,358 336,877 223 211 6.1% Concession and other taxes 182,819 252,766 114 158 (27.7%) 2,037,319 2,170,698 1,274 1,357 (6.1%) EBITDA 1,153,951 1,233,765 721 771 (6.5%) EBITDA Margin 36% 36% 36% 36% - Depreciation and amortization 1,033,526 1,098,177 646 686 (5.9%) Total operating expenses 3,070,845 3,268,875 1,920 2,043 (6.1%) Operating Income 120,425 135,588 75 85 (11.2%) Other Expense, net Interest income 61,624 47,481 39 29 29.8% Interest expense (36,286) (43,135) (23) (27) (15.9%) Exchange loss, net (45,015) (57,546) (28) (36) (21.8%) Gain from net monetary position 3,192 41,116 2 26 (92.2%) Net financing cost (16,485) (12,084) (10) (8) 36.4% Other (38,052) (7,864) (24) (5) 383.9% (54,537) (19,948) (34) (13) 173.4% Income before Income Taxes 65,888 115,640 41 72 (43.0%) Income Tax 35,592 29,841 22 18 19.3% Minority Interests expense 524 846-1 (38.1%) Net Income 29,772 84,953 19 53 (65.0%) Earnings per Share 38 109 0.024 0.068 (65.0%) Earnings per ADS (based on 7 shares per ADS) 269 766 0.17 0.48 (65.0%) Average Shares Outstanding (in millions) 776 776 776 776 11

Balance sheet Data (Adjusted for inflation and expressed in millions of constant bolivars as of December 31, 2003, and millions of US dollars) Assets Bs. Bs. US$ US$ 2003 2002 2003 2002 (Restated) (Restated) Current Assets: Cash and temporary investments 712,129 574,565 445 359 Accounts receivable, net of provision for uncollectibles of Bs. 83,323 and Bs. 80,321 434,418 599,967 272 375 Accounts receivable from Venezuelan Government entities 140,585 106,444 88 67 Inventories and supplies, net 73,369 110,136 46 69 Other 50,735 16,785 31 10 Total current assets 1,411,236 1,407,897 882 880 Property, plant and equipment, net of accumulated depreciation of Bs. 13,761,682 and Bs. 14,309,621 3,738,347 4,574,507 2,336 2,859 Cellular concession, net 161,451 167,132 101 104 Other 372,361 433,676 233 272 Total assets 5,683,395 6,583,212 3,552 4,115 Liabilities and Stockholders' Equity Current Liabilities: Short-term debt 200,067 93,718 125 59 Accounts payable 407,184 482,681 254 302 Employee severance benefits, net 76,436 56,664 48 35 Short-term pension and other post-retirement benefits obligations 75,907 43,603 47 27 Concession tax 49,047 69,069 31 43 Subscriber rights 67,785 80,416 42 50 Deferred revenue 123,321 135,955 77 85 Income, value added and other taxes 61,585 44,913 38 28 Dividends payable - 300,793-188 Other 99,670 98,156 64 62 Total current liabilities 1,161,002 1,405,968 726 879 Long-Term Liabilities: Long-term debt 184,077 420,728 115 263 Pension plan 271,287 364,742 170 228 Post-retirement benefit obligations 372,613 384,660 232 240 Total liabilities 1,988,979 2,576,098 1,243 1,610 Minority Interests 2,736 2,980 2 2 Stockholders' Equity 3,691,680 4,004,134 2,307 2,503 Total liabilities and stockholders' equity 5,683,395 6,583,212 3,552 4,115 12

Cash Flow Data For the years ended December 31, 2003 and 2002 (Adjusted for inflation and expressed in millions of constant bolivars as of December 31, 2003, and millions of US dollars) Bs. Bs. US$ US$ 2003 2002 2003 2002 Operating activities: (Restated) (Restated) Net income 29,772 84,953 19 53 Adjustments to reconcile net income to net cash provided by operating activities: Gain from net monetary position (3,192) (41,116) (2) (26) Exchange loss, net 45,015 57,546 28 36 Depreciation and amortization 1,033,526 1,098,177 646 686 Provision for uncollectibles 87,685 88,354 55 55 Provision for inventory obsolescence of wireless network inventory 1,492 36,651 1 23 Changes in current assets and liabilities 4,061 (44,223) 3 (28) Changes in non current assets and liabilities (119,242) (74,290) (75) (45) Net cash provided by operating activities 1,079,117 1,206,052 675 754 Investing activities: Software and Systems (14,206) (141,018) (9) (88) Capital expenditures, net of disposals (110,180) (508,761) (69) (318) Net cash used in investing activities (124,386) (649,779) (78) (406) Free cash flow 954,731 556,273 597 348 Financing activities: Payments of debt (97,291) (254,374) (61) (159) Dividend payments (635,873) (332,757) (397) (208) Purchase of shares for the Employee Benefit Fund (3,113) (8,901) (2) (6) Net cash used in financing activities (736,277) (596,032) (460) (373) Increase (decrease) in cash and temporary investments before loss in purchasing power of cash and temporary investments and foreign exchange gain of cash and temporary investments 218,454 (39,759) 137 (25) Loss in purchasing power of cash and temporary investments (139,403) (100,145) (88) (62) Foreign exchange gain of cash and temporary investments 58,513 211,747 37 132 Increase in cash and temporary investments 137,564 71,843 86 45 Cash and temporary investments: Beginning of year 574,565 502,722 359 314 End of year 712,129 574,565 445 359 13

The Company CANTV, a Venezuelan corporation, is the leading Venezuelan telecommunications services provider with approximately 2.7 million access lines in service, 2.7 million cellular subscribers and 1.1 million Internet users as of December 31, 2003. The Company s principal strategic shareholders are a wholly owned subsidiary of Verizon Communications Inc. with 28.5% of the capital stock, and Telefónica S.A. with 6.9%. Other major shareholders include the Venezuelan Government with 6.6% of the capital stock (Class B Shares), and employees, retirees and employee trusts which own 9.0% (Class C Shares). Public shareholders hold the remaining 49.0% of the capital stock. SAFE HARBOR: This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forwardlooking statements. Factors which may cause actual results to differ materially from those discussed herein include economic considerations that could affect demand for telecommunications services and the ability of the Company to make collections, inflation, regulatory factors, exchange controls and occurrences in currency markets, competition, labor relations, and the risk factors set forth in the Company s various filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 20-F. The Company undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Glossary of key indicators Bundled minutes: Actual minutes used by the customer within the minutes allowed under variously priced monthly customer tariff plans that include a maximum number of allowed minutes within the monthly tariff. Unbundled minutes: Minutes in excess of the limits set forth in a specific monthly customer tariff plan that are billed to the customer in addition to the basic monthly tariff plan that the customer has selected. Certain plans such as nights and weekends allow unlimited usage, so there is no direct correlation between usage and revenues for minutes generated under those plans. Net cash position: Cash minus short-term and longterm debt. EBITDA: Operating income plus depreciation and amortization. EBITDA margin: EBITDA as a percent of total operating revenues. Free Cash Flow: Cash flow from operating activities minus cash used in investing activities. 14

Reconciliation of Non-GAAP financial measures EBITDA (Million of constant bolivars as of December 31, 2003) Bolivars US$ 2003 2002 2003 2002 For the quarters ended December 31, Net Income (loss) 67,967 (3,225) 43 (2) Plus: Income tax 8,744 2,129 5 2 Plus: Minority interest income (4) (932) - (1) Minus: Other (expense) income, net (3,558) 12,836 (2) 8 Plus: Depreciation and amortization 249,401 261,073 156 163 EBITDA 329,666 246,209 206 154 EBITDA Margin EBITDA = 329,666 246,209 206 154 Total operating revenues 853,430 833,143 533 521 EBITDA Margin 39% 30% 39% 30% For the years ended December 31, Net Income (loss) 29,772 84,953 19 53 Plus: Income tax 35,592 29,841 22 18 Plus: Minority interest income 524 846-1 Minus: Other (expense) income, net (54,537) (19,948) (34) (13) Plus: Depreciation and amortization 1,033,526 1,098,177 646 686 EBITDA 1,153,951 1,233,765 721 771 EBITDA Margin EBITDA = 1,153,951 1,233,765 721 771 Total operating revenues 3,191,270 3,404,463 1,995 2,128 EBITDA Margin 36% 36% 36% 36% Free Cash Flow For the years ended December 31 Net cash provided by operating activities 1,079,117 1,206,052 675 754 Minus: Net cash used in investing activities (124,386) (649,779) (78) (406) Free cash flow 954,731 556,273 597 348 Net Cash Position Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2003 2002 2003 2002 Bs. Bs. US$ US$ Cash and temporary investments 712,129 574,565 445 359 Minus: Short-term debt 200,067 93,718 125 59 Long-term debt 184,077 420,728 115 263 Net cash position 327,985 60,119 205 37 15

2004 GUIDANCE MACROECONOMIC INDICATORS Total GDP Growth 6.5% Oil GDP Growth 10.0% Non-Oil GDP Growth 5.0% Average Exchange Rate Year-End Exchange Rate Bs. 2,097 per US$1 Bs. 2,500 per US$1 Devaluation (Year-to-Year) 56% Inflation (CPI) 36% Regulated Services Tariffs Effective Increase Non-Regulated Services Tariffs Effective Increase 24% weighted average In line with Inflation KEY OPERATING INDICATORS Access Line Growth 4% to 8% Local MOUs Growth 0% to 7% DLD MOUs Growth 5% to 11% ILD MOUs Growth 2% to 6% RCM (US$) Wireline US$29 to US$31 Wireless Subscriber Growth 3% to 4% Wireless MOUs Outgoing 15% to 17% RCM (US$) Wireless US$17 to US$19 KEY FINANCIAL INDICATORS (In billions of constant bolivars as of December 31, 2004, except per ADS amounts) Consolidated Revenues Bs. 4,350 to Bs. 4,560 Operating Expenses Bs. 2,780 to Bs. 2,830 EBITDA Bs. 1,570 to Bs. 1,730 EBITDA Margin 36% to 38% Net (Loss) Income Bs. (100) to Bs. 50 (Loss) Earnings per ADS Bs. (890) to 445 Consolidated CAPEX Bs. 430 to Bs. 530 Free Cash Flow Bs. 1,000 to Bs. 1,200 16

IMPORTANT NOTE: For additional financial and operating information please visit www.cantv.com.ve, click on the link Inversionistas English Version and go to the Quarterly Earnings Releases or the Press Releases sections. 17