Telefonica Germany wireless service revenues down 3.3% in Q1

3 May 2013

Telefonica Germany (O2), part of Spanish telecoms group Telefonica, has reported consolidated revenues of EUR1.230 billion (USD1.62 billion) for the first quarter of 2013, a decrease of 2.3% from EUR1.258 billion in the year-ago period, as wireless service revenues fell 3.3% year-on-year to EUR733 million. Excluding mobile termination rate cuts, wireless service revenues increased by 0.5%, while total wireless turnover (including the firm’s hardware business) rose 4.2%. Operating income before depreciation and amortisation (OIBDA) dropped 0.7% from EUR280 million in the first three months of 2012 to EUR278 million twelve months later, while the loss for the year from continuing operations was EUR13 million, compared to a profit of EUR15 million in Q1 2012. In the first three months of 2013 investments increased by 9.4% year-on-year to EUR146 million, mainly due to the acceleration of the LTE network rollout, which saw Munich and Berlin gain 4G coverage at the end of March, followed by Dusseldorf a month later. ‘2013 is notable for its particularly strong market dynamic,’ noted Rachel Empey, CFO of Telefonica Deutschland, adding: ‘Our solid results are the reward for our successful strategy. We effectively managed our customer base in a transition to the next wave of mobile data services to sustain our strong challenger position in the market.’

At the end of March 2013 Telefonica Germany, which was listed on the Frankfurt Stock Exchange in October last year, reported a total of 25.332 million customer accesses, an increase of 1.3% year-on-year, mainly driven by a 7.0% rise in the post-paid mobile subscriber base to 10.201 million. Pre-paid wireless users increased 0.6% year-on-year to 9.124 million, bringing O2’s total mobile base to 19.325 million at the end of March 2013 (up 3.9%). Meanwhile, the number of fixed telephony accesses dropped 7.9% to 2.213 million, while fixed broadband customers dropped 8.3% to 2.336 million and pay-TV users plummeted 34.8% to 51,000. Wholesale accesses rose 5.1% year-on-year to 1.113 million in Q1 2013.

Germany, Telefonica Deutschland Holding