The telecom service provider received a boost from the hardware business in particular, where record sales were achieved. The company confirmed its outlook for the year as a whole.
“We once again accelerated our growth at the start of the financial year,” said CEO Markus Haas according to the announcement. “The demand for our products and services remains high, even in these economically uncertain times for many people.”
According to further information, sales climbed by 8 percent to 2.10 billion euros in the three months. Service revenue in the mobile communications business grew by 4.2 percent to EUR 1.41 billion. Sales of end devices climbed by 23.6 percent to 485 million euros.
Adjusted operating profit (OIBDA) rose by almost 2 percent to 612 million euros. The corresponding margin fell to 29.1 from 30.9 percent. According to the other information, the company achieved a surprisingly strong profit growth of almost 14 percent to 30 million euros after taxes.
This means that Telefonica Deutschland did better than analysts had expected in terms of sales and profit after tax, but fears that the operating margin would decline not quite as sharply.
In 2023, as planned, Telefonica Deutschland wants to increase both revenue and the OIBDA in the low single-digit percentage range. The investment ratio should be around 14 percent after 14.7 percent in the previous year.
Telefonica rejects 1&1’s request for access to the competition’s 5G network
The fourth German network operator, 1&1, has met with sharp criticism for its demand for access to the competition’s 5G network. “That is outrageous and from our point of view completely untenable,” said the head of Telefónica Germany (O2), Markus Haas, on Wednesday in Munich. 1&1 had previously applied to the Federal Network Agency for the regulatory authority to order so-called national roaming and for the networks to be opened up to one another. Then in the future 1&1 cell phone customers would also get reception where the company does not yet have its own antennas.
1&1 had auctioned frequencies for the first time in 2019 to build its own network. However, the company is making slow progress: instead of putting 1,000 5G locations into operation by the end of 2022 as required, there were only five. There are now 20. So far, no antenna has been activated for mobile phone use, the opening of the network for mobile applications is planned for September. Away from the few 1&1 locations that are still available at this point in time, customers will then be able to connect via the O2 network, but only in the slower 4G radio standard.
With “national roaming”, 1&1 still wants to offer new customers nationwide 5G connections in the future. Should the newcomer receive this type of “superroaming”, in which wireless connections are established to the antennas of all the competition, 1&1 would suddenly have a better hand in the race for customer favors. Telefónica Deutschland boss Haas assumes that the Federal Network Agency will reject the 1&1 application. Annoyed, he said that you have to invest in network construction “and not always whine and ask the regulator for help”. One is ready to negotiate about 5G roaming, which is not ordered by the state – and at “fair prices”.
Criticism of 1&1 also came from Deutsche Telekom, a company spokesman called the call for super roaming “absurd”. And a Vodafone (Vodafone Group) spokesman said: “We have noted the application with great astonishment.”
The shares of Telefonica Germany are temporarily listed in XETRA trading 5.41 percent lower at 2.96 euros.
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