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Telefonica slows German revenue decline to 0.5% in Q3
2014-11-10 10:50:00| Telecompaper Headlines
(Telecompaper) O2 Germany added 143,000 postpaid customers and 70,000 new prepaid customers in the third quarter to take its mobile base to 19.6 million at the end of September. The figures do not yet include E-Plus, which was consolidated only from 01 October. The operator's retail fixed broadband base fell by another 31,000 customers in Q3 to 2.2 million. Telefonica said the Q3 results confirmed the improving trend since the beginning of the year, with revenues in the third quarter down only 0.5 percent year-on-year to EUR 1.219 billion, compared to drops of 4.4 percent in Q2 and 8.8 percent in Q1. Mobile service revenues totaled EUR 754 million, down 1.5 percent. The drop in mobile revenue was limited by growth in mobile data and the company's data monetisation strategy. Mobile data revenues including SMS revenues were up 0.2 percent in Q3 to EUR 366 million. Non-SMS mobile data revenue was up 9.3 percent in the same period. OIBDA was still down 17.8 percent to EUR 240 million in Q3, giving a margin of 19.7 percent. The result was hurt by initial restructuring costs related to the acquisition of E-Plus as well as investments in sales and marketing. Capital expenditure was down 15.6 percent year-on-year to EUR 145 million. Telefonica said it had already started the integration of E-Plus with the appointment of new management and plans to cut 1,600 duplicate jobs from the merged group.
Tags: german
revenue
decline
q3
Category:Telecommunications