The telecommunications service provider received tailwind from the strong growth of around 400,000 contract customers in the mobile communications business. The company reiterated its slightly increased outlook for the full year in July.
“After a strong third quarter, we are fully on track to achieve our goals for the 2023 financial year,” said CEO Markus Haas, according to the statement.”
According to further information, sales climbed by 2.2 percent to 2.131 billion euros in the three months. Service revenue in the mobile communications business grew by 3.4 percent to 1.523 billion euros. Sales of end devices, on the other hand, fell by 2.1 percent to 395 million euros. High-quality smartphones continued to be in demand, while overall customer demand for “O2 my Handy” contracts was somewhat weaker in line with the German market.
Adjusted operating profit (OIBDA) rose by 3.6 percent to 665 million euros. This development was driven by strong operational development and successful cost management in the reporting period. At 31.2 percent, the corresponding margin was higher than the 30.8 percent achieved in the same period last year. According to further information, the company generated 41 million euros after taxes, compared to 39 million in the same period last year.
Overall, Telefónica Deutschland performed better than analysts expected.
In 2023, Telefónica Deutschland wants to reach the upper end of the forecast range in terms of sales and OIBDA, as planned, according to which the increase should be in the upper range of growth in the low single-digit percentage range.
Spanish Telefónica wants to take over its German subsidiary completely
The Spanish telecommunications group Telefónica wants to completely take over its German subsidiary, known under the brand name O2. On Tuesday, the company surprisingly announced a purchase offer that would concern up to 28.19 percent of the share capital. Telefónica currently holds 71.81 percent of the shares. They want to concentrate on their core markets, where Germany represents one of the “most attractive and stable telecommunications markets in Europe”. According to its own statements, the bidder does not want to conclude a control or profit transfer agreement. Telefónica Deutschland is one of the three mobile phone network operators in this country, the major competitors are Deutsche Telekom and Vodafone.
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As Telefónica Deutschland announced, the company’s board of directors and supervisory board are examining the offer documents and will then comment. The company has around 7,500 full-time positions, and in addition to the headquarters in Munich, the former E-Plus headquarters in Düsseldorf is a large company location. Germany boss Markus Haas viewed the Spanish mother’s plan as a “strong commitment”.
The Spaniards are unlikely to have any financing problems with the deal: “Telefónica is currently sitting on seven billion euros gross cash on the balance sheet, which leaves plenty of scope for financing,” wrote analyst Akhil Dattani from JPMorgan in an initial assessment of the transaction.
DZ Bank raises fair value for Telefónica Deutschland – ‘Hold’
DZ Bank has raised the fair value of Telefónica Deutschland’s shares from 1.80 to the level of the Spanish parent Telefónica’s takeover offer of 2.35 euros. The rating gave analyst Karsten Oblinger a “hold” rating in his reaction on Tuesday. An increase in the offer seems unlikely.
Telefónica Deutschland in rally mode after offer from Spain
A price rally of almost 40 percent in Telefónica Deutschland shares was triggered on Tuesday by an offer from the Spanish parent company Telefónica for a complete takeover. This means that the shares of the German mobile phone provider made up for a drop in prices from the beginning of August, when the previous roaming partner 1&1 announced its new partnership with Vodafone.
On Tuesday, Telefónica Deutschland shares were finally up 37.86 percent at 2.354 euros via XETRA. The Spanish Telefónica is offering 2.35 euros per share in cash for the approximately 840 million shares or a good 28 percent of the shares that it does not yet own. This brings the volume of the deal to just under two billion euros.
According to its own information, Telefónica currently holds around 70 percent of Telefónica Deutschland. The Spaniards are unlikely to have any financing problems with the deal: “Telefónica is currently sitting on seven billion euros gross cash on the balance sheet, which leaves plenty of scope for financing,” wrote analyst Akhil Dattani from JPMorgan in an initial assessment of the transaction.
It took a good three quarters of an hour on the XETRA trading platform on Tuesday morning until an initial price for Telefónica Deutschland shares could be determined. At 2.35 euros, this was exactly the purchase price offered. The price rally also pulled other shares from German telecom providers such as United Internet and 1&1 up by almost 6 percent each.
It was only at the beginning of August that Telefónica Deutschland fell by a good 23 percent within two trading days. The price slide was triggered by the fact that the previous roaming partner 1&1 switched to the network operator Vodafone. The current contract between Telefónica Deutschland and 1&1 only applies to 4G, while Vodafone includes the latest mobile communications standard, 5G. Analysts viewed this development as a serious strategic defeat for Telefónica Deutschland.
FRANKFURT (Dow Jones / dpa-AFX Broker) / MADRID/MUNICH/FRANKFURT (dpa-AFX)
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