telecommunications
Telefonica generates record revenues in mobile phone sales
The logo of the telecommunications provider Telefonica can be seen on a sign in front of the German headquarters at the Uptown skyscraper in Munich. Photo: Sven Hoppe / dpa
© dpa-infocom GmbH
Telefonica is optimistic about future business and is raising its forecast. In the past quarter, the group generated more sales than ever before.
According to its own information, the telecommunications provider Telefonica Deutschland earned more revenue than ever before with its mobile communications services in the third quarter.
In the months of July to September, the so-called service revenue rose compared to the same quarter of the previous year by 4.4 percent to around 1.4 billion euros, as the group announced in Munich on Wednesday.
In addition to increased interest in the core brand O2, Telefonica also played a role in increasing sales per customer. Including the increased proceeds from hardware sales and DSL, the company has quarterly sales of almost two billion euros, which corresponds to an increase of 5.1 percent compared to the same period of the previous year.
In the operative business Telefonica Deutschland posted earnings before interest, taxes, depreciation and amortization (Oibda) of 613 million euros and thus three percent more than a year ago. The bottom line was that Telefonica Deutschland posted a profit of 227 million euros. The sale of a second tranche of rooftop locations to the Telefonica subsidiary Telxius had a positive effect. This contributed a good 262 million euros.
Based on the positive development, the Executive Board headed by CEO Markus Haas is optimistic about the year as a whole. The operating result (Oibda) is now expected to grow in the low mid-single-digit percentage range. The Board of Management had already raised its forecast beforehand and announced that the operating result would be slightly higher than the previous year’s figure. The goal for the group proceeds, however, remains with a slight plus. In terms of investments, Telefonica now expects less than the previously envisaged 17 to 18 percent of sales.