Telefonica Germany said it has lifted its outlook for OIBDA adjusted for special effects for the fiscal year 2021 on the back of positive earnings and revenues growth. It now expects OIBDA growth in the low mid-single-digit percentage range for the current fiscal year, up from its previous forecast of slightly positive OIBDA. It still expects slightly positive revenues and a capex to sale ratio of 17-18 percent.
Telefonica’s revenues increased by 5.1 percent year-on-year to EUR 1.96 billion in Q3 2021, mainly driven by accelerating mobile service revenue growth reflecting commercial momentum. Mobile service revenues progressed by 4.4 percent in Q3 to EUR 1.42 billion, thanks to strong brand and partner performance, and O2 postpaid ARPU continuing to grow. Handset revenues were higher, too, by 9 percent year-on-year to EUR 339 million with high value handsets remaining popular, supported by marketing campaigns.
Revenues from the fixed-line business rose by 2.8 percent in Q3 this year to EUR 203 million, mainly driven by a growth in the VDSL customer base. OIBDA grew by 3 percent during the period to EUR 613 million as a result of an acceleration of mobile service revenues including higher inflow-ARPUs, the implementation of efficiency measures and the optimization of customer service. The result was, however, partially offset by lower marketing spending, roaming mix and pressure from inflation on costs. Capex increased by 20.4 percent year-on-year in the third quarter to EUR 303 million.
Telefonica Germany added 415,000 postpaid mobile customers in Q3, up 59 percent year-on-year, driven by sustained traction of the O2 Free portfolio and a “solid” contribution from partner brands. It lost 104,000 prepaid mobile customers during the period due to the continued trend of prepaid to postpaid migration. The M2M business added 40,000 customers in Q3.
O2 postpaid ARPU improved by 0.9 percent year-on-year in Q3. Prepaid ARPU improved to EUR 6.6 in the third quarter. The number of fixed-line broadband customers reached 2.3 million in the first nine months of the year, up 0.2 percent year-on-year. The VDSL customer base grew by 3.5 percent to 1.8 million. The company added 2,000 fixed-line customers in Q3 this year following the re-opening of O2 shops in June, a trend that is improving throughout the year in a market focused on high-speed connectivity and demand for fixed-mobile substitution (FMS) products. Demand for VDSL products remained robust with 7,000 net additions in the third quarter of this year.
