Telefonica Germany said its revenues increased by 0.3 percent year-on-year in Q2 to EUR 1.79 billion, impacted by the Covid-19 pandemic and other non-recurring factors impacting mobile service revenue. Adjusted OIBDA declined by 5.1 percent to EUR 552 million, reflecting higher supply costs from handsets and EUR 43 million of combined effects from Covid-19 and other one-time factors.
Handset sales and the fixed businesses remained strong. Handset revenues grew by 14.4 percent in Q2 to EUR 322 million while fixed revenues progressed by 4.3 percent to EUR 193 million. Revenues in the mobile business declined by 0.2 percent year-on-year in the second quarter to EUR 1.59 billion, and mobile service revenues fell by 3.3 percent to EUR 1.27 billion. The closure of O2 shops in mid-March and an April impacted the prepaid business and travel restrictions compromised roaming patterns, it said.
Operating cash flow declined by 6.7 percent to EUR 305 million while free cash flow fell 0.6 percent to EUR 74 million.
For the fiscal year 2020, the company confirmed its outlook. It expects flat to slightly positive year-on-year revenues, broadly stable to slightly positive OIBDA and capex at 17-18 percent of sales or less. That compares to a first-half performance of 2 percent revenue growth, 2 percent lower OIBDA and capex at 13.1 percent.
The number of mobiles accesses grew in Q2 year-on-year to 43.51 million, including 19.32 million prepaid subscriptions and 22.88 million postpaid accesses. The company added 158,000 mobile postpaid customers in the second quarter, reflecting a gradual recovery of trading momentum post lockdown with sustained customer demand in particular for O2 Free portfolio tariffs. The prepaid business lost 366,000 customers due to weak demand for prepaid offers, ongoing prepaid to postpaid migration trends in the market and seasonality, the company said.
The number of LTE customers jumped by 25.6 percent year-on-year to 25.3 million as of 30 June, thanks to sustained demand for high-speed mobile data services. LTE-penetration across the base reached 60.1 percent, up 12.1 percentage points year-on-year, while LTE penetration in postpaid continues to be significantly higher at 75 percent.
Internet and data accesses increased during the period, too, to 2.33 million, including 2.24 million broadband contracts and 1.72 million VDSL accesses. Fixed broadband registered 13,000 net additions in Q2, driven by continued strong demand for VDSL, which posted 41,000 net additions in the second quarter.
