MIRA INFORM REPORT

 

 

Report Date :

07.07.2014

 

IDENTIFICATION DETAILS

 

Name :

EMPRESA DE TELECOMUNICACIONES DE CUBA S.A.

 

 

Registered Office :

Edificio Beijing, 5to piso, Ave 3ra, e/ 76 y 78, Centro de Negocios Miramar, Playa, CP. 11300 Ciudad de La Habana

 

 

Country :

Cuba

 

 

Date of Incorporation :

28.06.1994

 

 

Legal Form :

Company limited by shares

 

 

Line of Business :

·         Wired telecommunications activities

·         Satellite telecommunications activities

·         Wireless telecommunications activities

 

 

No. of Employees :

189

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Cuba

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

CUBA - ECONOMIC OVERVIEW

 

The government continues to balance the need for loosening its socialist economic system against a desire for firm political control. The government in April 2011 held the first Cuban Communist Party Congress in almost 13 years, during which leaders approved a plan for wide-ranging economic changes. Since then, the Cuban government has slowly and incrementally implemented limited economic reforms, including allowing Cubans to buy electronic appliances and cell phones, stay in hotels, and buy and sell used cars. The Cuban government also opened up some retail services to "self-employment," leading to the rise of so-called "cuentapropistas" or entrepreneurs. Recent moves include permitting the private ownership and sale of real estate and new vehicles, allowing private farmers to sell agricultural goods directly to hotels, and expanding categories of self-employment. Despite these reforms, the average Cuban's standard of living remains at a lower level than before the collapse of the Soviet Union and the resulting downturn of the 1990s. Since late 2000, Venezuela has been providing oil on preferential terms, and it currently supplies over 100,000 barrels per day of petroleum products. Cuba has been paying for the oil, in part, with the services of Cuban personnel in Venezuela, including some 30,000 medical professionals.

 

Source : CIA

 

 

REGISTERED NAME & COMPANY SUMMARY

 

EMPRESA DE TELECOMUNICACIONES DE CUBA S.A.

DBA:  Etecsa

 

ADDRESSES:

Main Address:   Edificio Beijing, 5to piso, Ave 3ra, e/ 76 y 78, Centro de Negocios Miramar, Playa

Zip code/City:    CP. 11300 Ciudad de La Habana, Cuba

Telephone:        +53 7217533

                        +53 2668500

Fax:                  +53 7217533

                        +53 2668500

 

Web site:          http://www.etecsa.cu

E-mail:              gestur@softel.cu

VAT-No.:           30000352932

 

 

Profile

 

Established:                  1994

Line of Business:           Telecommunication

Industry Division:            Services

Industry-code (NACE):    6190 Other telecommunications activities

            6110 Wired telecommunications activities

            6130 Satellite telecommunications activities

            6120 Wireless telecommunications activities

Banks:                          Banco Central

Employees:                   189

 

 

DIRECTORS/MANAGEMENT

 

Official Administration:

President          Mayra  Arevich Marin

President          Ramiro Valdes

Director             Luis Manuel Díaz

 

 

NEGATIVE INFORMATION

 

Public information:

- Nomination of Directory in 28/06/1994

- Last Modification of Shareholders Structure in 16/12/2010

Regulatory Institution:

- National Office of Tax Administration

 

Act of Legal Incorporation:

- Office: Central Merchant Registry

- Number of Writing: 1657

 

 

SHARE & SHARE CAPITAL INFORMATION

 

State Register:              1657

Legal form:                    Company limited by shares

Incorporation date:         28.06.1994

Balance sheet filing date:            -

Tax Contributor Number (CNPJ):  -

Legal status:                 active

Responsible Register:    State Register of Ciudad de La Habana, Cuba

 

Entry    Deleted             Name

28.06.1994                    Empresa De Telecomunicaciones De Cuba S.A.

 

Entry    Deleted             Legal domicile

28.06.1994                    La Habana, Cuba

 

Entry    Deleted             Address

28.06.1994                    Egido no. 610 e/ Gloria y Apodaca, Habana Vieja, Ciudad de La Habana, Cuba/CU

 

Entry    Deleted             Capital

active                Share Capital USD 300,000,000, paidup USD 300,000,000

 

 

PAYMENT INFORMATION

 

Import and Export:

Import

 

Payment history:

Regular.

 

This is a state-owned Company, subsidized and funded by the Cuban government; therefore, payments should be considered to be guaranteed by the Cuban Government.

 

Owners/-s:

Class:   50-100%

Type:    direct

Name:   Telefónica Antillana S.A.

City/Country:     Havana/La Habana, Cuba/CU

No. of shares:    6,188

Interest:            51,01% voting right, 51,01% capital interest

Class:   20-29%

Type:    direct

Name:   RAFIN S.A

City/Country:     Havana/La Habana, Cuba/CU

No. of shares:    3,276

Interest:            27,00% voting right, 27,00% capital interest (since 31.01.2011)

 

Class:   10-19%

Type:    direct

Name:   Universal Trade & Management Corporation S.A.

City/Country:     La Habana, Cuba/CU

No. of shares:    1,345

Interest:            11,09% voting right, 11,09% capital interest

 

Class:   0-9%

Type:    direct

Name:   Banco Financiero Internacional SA

City/Country:     Havana/La Habana, Cuba/CU

Interest:            6,16% voting right, 6,16% capital interest

 

Class:   0-9%

Type:    direct

Name:   Negocios en Telecomunicaciones S.A.

City/Country:     La Habana, Cuba/CU

No. of shares:    464

Interest:            3,83% voting right, 3,83% capital interest

 

Class:   0-9%

Type:    direct

Name:   Banco Internacional de Comercio S.A

City/Country:     Havana/La Habana, Cuba/CU

No. of shares:    112

Interest:            0,92% voting right, 0,92% capital interest

 

 

FINANCIAL INFORMATION

 

Financial Data Empresa de Telecomunicaciones de Cuba S.A.

Consolidation:    unconsolidated

Industry:            Trade/Industry

 

Fiscal year end:                         31.12.2012

Number of months:                     12

Currency:                                  USD

 

Total shareholders equity            230,000.0

Total assets                              710,000.0

Cash flow                                  122,000.0

 

Financial information:

The full accounts are not available. From third-party sources we were given the financial information provided in this report.

 

Score on National Credit Report: Available to Fiscal Credit, score "01" - low risk

 

Tax Class: Legal User

Tax Status: Active

 

Observations: 03 on

- This user require of a retention for 100% on each tax

- Mandatory statement (Last on September 2013)

- Subscribed to social security system

 

 

FOREIGN EXCHANGE RATES

 

Exchange rate:

US$ 1,00  =  CUP 22,222           -  Official rate

 

 

ADDITIONAL INFORMATION

 

Main Activities:

The company is an organization of Cuban mixed capital, supported by the Cuban Government which aims to provide social services, public telecommunications, through the operation, installation, operation, marketing and maintenance of public telecommunications networks throughout the territory of the Republic of Cuba.

 

Products/Services description: Telephone service, Cellphone, Internet.

 

Brands: ETECSA

 

Competitors: The company is highly questioned to be the only communications provider within the country without competition.

 

The company imports from Italy

Suppliers: Telecom Italia S.p.A

 

Partnerships:

The company has at least some contractual relationships with: MACH Switzerland.

 

Operations and branches:

At the address, Centro de Negocios Miramar, Edificio Beijing, 5to piso, Ave 3ra, e/ 76 y 78, CP. 11300 Playa, Ciudad de La Habana, Cuba, we find the headquarters and operative office of the company.

 

At the address, Egido no. 610 e/ Gloria y Apodaca, Habana Vieja, Ciudad de La Habana, Cuba, we find the legal office of the company.

 

Branches:

Dirección Central de Comercial y Mercadotecnia Centro de Negocios Miramar, Edificio Beijing, Ave 3ra, e/ 76 y 78, 4to piso, Playa, La Habana Teléfonos:Secretaria 266 8364/Secretaria Ejecutiva:2668363

 

Dirección Central de Negociación e Importaciones Centro de Negocios Miramar, Edificio Habana, 4to piso. Ave 3ra, e/ 76 y 78, Playa, La Habana

 

Dirección Central de Capital Humano Centro de Negocios Miramar, Edificio Beijing, Ave 3ra, e/ 76 y 78, 4to piso, Playa, La Habana

 

Divisiones territoriales:División La Habana Águila #565 esq.a Dragones, Centro Habana, Ciudad de La Habana.

 

División Territorial Isla de la Juventud Calle 41 No.2804 Esquina 28 Nueva Gerona, Isla de la Juventud.

 

División Territorial Pinar del Río Alameda #11A esq. Maceo, Pinar del Río.

 

División Territorial Artemisa Calle 33 esquina 48 Municipio Artemisa

 

División Territorial Mayabeque Ave.47 #8213 e/82 y 86, San José de las Lajas.

Quality certification:       NC-ISO 9000

 

Staff:

189

 

Company's Background:

In 1993 the constitution of ETECSA was authorized, and in 1994 it was granted the administrative concession for the provision and marketing of public telecommunications services.

 

Empresa de Telecomunicaciones de Cuba S.A. ETECSA, is an organization of Cuban mixed capital and aims to provide social services, public telecommunications

 

The company has a medium sized structure and 20 years of experience in the market.

 

The company has been highly questioned since it is the only telecommunications company and has no competitors in its field, therefore it sets prices well above the usual rates in the world.

 

The company has alliances with Italian providers and its revenue has shown an increase in the last years.

 

Although, ETECSA has new rates for their mobile communications, incoming and outgoing phone calls are still being paid in Cuban Convertible Pesos (CUC). Which makes receiving and making calls very expensive for Cubans, even for tourists. Starting on 4 June 2013 Cubans can sign up with ETECSA for public Internet access under the brand "Nauta" at 118 centers across the country. Juventud Rebelde, an official newspaper, said new areas of the Internet would gradually become available. The cost of Internet access is CUC$4.50 per hour (or CUC$0.60 for domestic intranet access and CUC$1.50 for email), which is still high in a country where state salaries average $20 a month. ETECSA now is working on the installation of new public telephones and has decided to import from a new model from Italy. In an exclusive interview, it has been said that the installation may be delayed because of financial crisis being faced by ETECSA. However, the government is keen on providing the best facilities for the Cuban people.

 

 

NOTES & COMMENTS

 

We called the company several times but could only contact the operators department which refused to confirm information.

 

Other Branches:

División Territorial Matanzas Milanés e/. Jovellanos y Ayuntamiento, Ciudad de Matanzas.

 

División Territorial Villa Clara Carretera Central No. 116 Banda Placetas. Reparto Escambray

 

División Territorial Cienfuegos Calle 43 No. 5802, entre 58 y 60, Cienfuegos

 

División Territorial Sancti Spíritus Bartolomé Massó No. 167 Norte. Sancti Spíritus

 

División Territorial Ciego de Ávila Prolongación de Bembeta y Circunvalación # 250, Ciego de Ávila.

 

División Territorial Camagüey Calle Ignacio Agramonte # 442 Entre López Recio e Independencia, Camagüey.

 

División Territorial Las Tunas Francisco Vega # 53 Rpto. La Loma, Las Tunas.

 

División Territorial Holguín Martí No. 122 e/ Mártires y Máximo Gómez. Holguín.

 

División Territorial Granma Libertad # 2 altos. / Maceo y Canducha Figueredo, Bayamo. Granma

 

División Territorial Santiago de Cuba Aguilera #401 Esq. Pío Rosado, Santiago de Cuba

 

División Territorial Guantánamo Ahogados entre 11 y 12 norte, Guantánamo.

 

News

In Cuba Standard - Cuban Business and Economic News in January 31, 2010

 

"Cuban state buys out Telecom Italia

 

Amid a cash crunch for the Cuban government, Cuban state company Rafin S.A. bought Telecom Italia’s 27-percent share in Cuban telecom ETECSA for a premium price of $706 million.

 

In its latest half-year report, TI valued its ETECSA stake at 367 million euro ($481 million), according to Italian newspaper Il Sole. However,  TI reportedly asked $780 million for the stake in negotiations with Spain’s Telefónica in 2009.

 

According to a Telecom Italia press release, the Cuban entity already paid $500 million; Rafin will pay the remainder in 36 monthly installments of $5.72 million each. The arrangement is subject to “specific credit guarantees,” TI said, without explaining.

 

The sale of the ETECSA stake concludes Telecom Italia’s efforts to shed non-core assets and reduce debt; the company announced in 2008 that it wanted to sell its Cuban business. Chairman Franco Bernabe told Italian reporters that the participation in ETECSA was “only financial,” contrasting with Telecom Italia’s controlling stakes in entities in Brazil and Argentina.

The Cuban government has not commented the purchase.

 

The government set up Rafin in 1997 as an entity to finance import-export operations, participate in debt refinancing operations, and manage centralized funds for state companies, among others. It is the non-bank financial branch of Grupo de Administración Empresarial S.A. (Gaesa), the armed forces’ business unit that controls entities that have remained solvent throughout the most recent cash crunch that began in 2008.  This is likely Rafin’s largest-volume undertaking ever.

 

The Cuban purchase doesn’t come as a surprise, since TI officials had talked about negotiations since last October. However, third-country companies including Telefónica had also expressed interest. Earlier this year, Britain’s Cable & Wireless Communications plc said it wanted to bid for the stake, attracted by Cuba’s growth potential in the mobile phone sector. The London-based company is entering the Cuban market via an undersea cable linking Jamaica and Cuba. The cable landing, company CEO Tony Rice said last year, would position Cable & Wireless as a top contender to take over the ETECSA share.

 

“The starting point is the cable landing, but the greater prize is working with the [Cuban] government to develop its telecoms market,” Cable & Wireless CEO Tony Rice said in March, according to the Sunday Times.

 

A Cable & Wireless spokesman later said that reports about an ETECSA stake purchase went “too far,” according to trade publication Total Telecom.

 

Cuba is not only the largest Caribbean market, but it is also the most underdeveloped for broadband and wireless communications in the western hemisphere.

 

Six Cuban state entities now own ETECSA — Telefónica Antillana S.A. (51.006%), Rafin S.A. (27.003%), Banco Financiero Internacional S.A. (6.157%), Universal Trade & Management Corporation S.A. (11.086%), Banco Internacional de Comercio S.A. (0.923%), and Negocios en Telecomunicaciones S.A. (3.825%)."

 

In Cuba Standard - Cuban Business and Economic News in January 31, 2010

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.102.66

Euro

1

Rs.81.32

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NNA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.