Telefónica Germany raises revenue by 6% and improves forecast for 2022 | comp

Telefónica Deutschland reported revenue of €2,085 million in the third quarter of the year, up 6% over the same period last year, with improvement in all areas of the business. Germany is one of the four strategic markets of the Telefónica Group, along with Spain, the United Kingdom and Brazil. In the first nine months of the year it rose 5.7% to 6,034 million.

Thus, mobile services grew by 3.7%, to 1.473 million euros, with 18.9% of terminal sales and 1.6% of fixed broadband in the retail sector.

Ebitda’s rate rose 4.7%, to €642 million, its highest figure in the past eight quarters. The margin was 30.8%. Free cash flow during September was $710 million.

Net profit in the first nine months of the year was 106 million euros, down from 143 million a year earlier. However, in 2021, Telefónica Deutschland recorded the sale of 4,000 mobile phone sites to American Tower, for which it generated a capital gain of 262 million.

The operator raised its expectations for the year as a whole. Revenue estimates go from low single digit growth to low to medium single digit growth, while OIBDA goes from low single digit growth to low to medium single digit growth with margin improvement.

Commercially, Telefónica Deutschland added 304,000 mobile contract customers, with a turnover rate of 1.2%. With that said, spending per customer (ARPU) was down 1.3%. In the land line, telecom posted a gain of 19,000 lines, with momentum up 1.1%. Arpo in this sector increased by 3.3%.

At the end of the quarter, Telefónica Deutschland’s debt amounted to 3,410 million euros, with a leverage ratio of 1.4 times.