O2 Germany 1Q 2009 revenues up 3.6%

13 May 2009

O2 Germany, a subsidiary of Spanish telecoms giant Telefonica, has reported its fiscal results for the three months ended 31 March 2009, posting a 3.6% rise in revenues year-on-year to EUR886 million (USD1.21 billion). Revenues from mobile services increased 0.6% to EUR695 million compared with the same period in 2008, while wholesale fixed broadband revenues contributed EUR113 million, up 15.3% year-on-year. The company’s first quarter 2009 operating income before depreciation and amortisation (OIBDA) totalled EUR202 million, representing a strong growth of 24.2% compared with the first three months of 2008. The company attributed the results to increased own mobile network coverage, improved distribution network, enhanced profitability of the fixed broadband wholesale business, as well as the new commercial approach introduced in the fourth quarter 2008, which significantly reduced acquisition and retention costs. CAPEX amounted to EUR184 million in the first quarter, 34.7% higher year-on-year, which the company states reflects the continuation of the infrastructure network rollout and the acceleration of its distribution network.

O2 Germany’s mobile subscriber base reached 14.5 million at the end of March 2009, up 11.5% year-on-year. In the first quarter of 2009 the company achieved mobile contract net additions of 118,225, an increase of 37.6% over the previous quarter. Post-paid customers represented 48.8% of the base compared with 49.5% at the end of March 2008. The company added 16,895 DSL customers to reach a total customer base of 231,678 at the end of Q1. Meanwhile, Telefonica Deutschland reported 1.4 million ULL lines in total at the same date, an increase of 71.4% year-on-year.