Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

The Movistar brand came into existence as a result of Telefonica acquiring various mobile operators in South America. In the Mobile telecommunications market, brand is power. Telefonica realised this and set about building a global brand under the Movistar name in 2005. Since then the brand has become dominant in Spain and 12 South American countries with 22 million customers worldwide.

In the Seven months to September 2011 the Movistar brand lost $3,572 million of value. The brand dropped 16 places to position number 67 in the Brand Finance Global 500 study. This was largely the result of Movistar’s large amount of exposure to the Spanish economy with 35% of total revenue generated in Spain.

Movistar is looking to spread brand awareness in the US through the sale of Movistar branded products such as handsets and other wireless devices. The products are to be mainly targeted at South Americans living in the US as the Movistar will likely resonate more strongly with them.

In June 2011 Movistar released its own version of the Amazon Kindle. The market for e-book readers is lucrative; 13 million e-book readers were sold in 2010. There is also a lot of potential for growth, Western Europe accounted for just 7% of the 13 million e-books readers sold. Movistar hope to take the e-book reader to Argentina and then the rest of South America.

League tables

Movistar appears in the following brand league tables:

Rank 56 in the Global 500 2012.
Rank 6 in the Top 500 Telecom Brands 2011.
Rank 51 in the Global 500 2011.
Rank 51 in the Global 500 2011.
Rank 3 in the Spain 100 2010.
Rank 77 in the Global 500 2010.
Rank 8 in the Mobile Telecom 100 2010.
Rank 10 in the Top 500 Telecom Brands 2010.
Rank 82 in the Global 500 2009.
Rank 99 in the Global 500 2008.
Rank 111 in the Global 250 2007.