Telefonica Deutschland launched a new "transformation programme", Digital4Growth, focusing on the digital customer experience at its Capital Market Day on 23 February. The company said it aims to bring in gross OIBDA of EUR 600 million between 2019 and 2022 and achieve additional revenue growth, including EUR 200-300 million from the Internet of Things (IoT), and efficiency gains by digitising processes and services under the programme.
The company confirmed its intention to deliver a high pay-out ratio in relation to free cash flow and said it will propose a cash dividend of EUR 0.26 per share for the 2017 financial year at its 17 May general meeting. The company also confirmed that it plans to complete its network consolidation following the E-Plus merger by mid-2018 and will reach its synergy target of EUR 900 million in operating cash flow savings by the end of 2019.
Under Digital4Growth, Telefonica said it will streamline interactions with customers by building consistent, omnichannel interfaces for all interactions and transactions with customers, with the goal of reducing postpaid churn by at least 2 percent and increasing penetration of the O2 app to over 80 percent. The company said it likewise wants to reduce the number of active tariffs by 40 percent and IT-spend per subscriber by 15 percent by 2022.
Another aim under the plan is to fulfill customer requests in real-time and react quickly to changing market conditions through data analysis, enabling Telefonica to reduce manual back-office interventions by 80 percent and increase sales in self-assisted channels to over 25 percent by 2022.
