Telefónica Deutschland increases revenue and operating results in the third quarter

Telefónica Deutschland increases revenue and operating results in the third quarter

According to a report by www.finanzen.net, Telefónica Deutschland slightly increased both revenue and operating profit in the third quarter and improved the operating margin. Sales rose by 2.2 percent to 2.131 billion euros, with service revenue in the mobile phone business growing by 3.4 percent to 1.523 billion euros. 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. Interest in high-quality smartphones also contributed to growth, while overall customer demand for “O2 my Handy” contracts was somewhat weaker.

The Spanish Telefónica plans to completely take over its German subsidiary, which led to a price rally of almost 40 percent in Telefónica Deutschland shares. The company is offering 2.35 euros per share in cash for around 28 percent of the shares that it does not yet own, which corresponds to a deal volume of almost two billion euros. Analysts expect Telefónica Deutschland to reach the upper end of the forecast range for 2023 in terms of sales and OIBDA.

This takeover offer caused DZ Bank to increase the fair value of Telefónica Deutschland's securities to the level of the takeover offer from the Spanish parent Telefónica and to leave the rating at “Hold”.

The takeover and the associated positive development not only have an impact on Telefónica Deutschland, but also on other telecommunications companies such as United Internet and 1&1, which also recorded price increases.

Overall, this planned takeover has the potential to change the telecommunications industry in Germany and influence competition. The company is expected to emerge stronger from the transaction following the acquisition. This will further consolidate Telefónica Deutschland's position as one of the three mobile phone network operators in Germany.