Operating cash flow (OIBDA^4 minus CapEx^5) increased +6.3% y-o-y and amounted to EUR 319m in Q1 21. Excluding exceptional effects, operating cash flow amounted to EUR 333m in Q1 21, up +8.1% y-o-y. Free cash flow (FCF)^[6]amounted to EUR 248m in Q1 21 compared to EUR 241m in Q1 20. Lease payments, primarily for leased lines and antenna sites, amounted to EUR -266m in Q1 21 (EUR -259m in Q1 20). As a result, FCFaL stood at EUR -18m for the reporting period, flat year-on-year. Working capital movements were negative in the amount of EUR -73m in Q1 21. This development was mainly driven by a decrease in capex payables (EUR -80m), increased prepayments (EUR -32m), net restructuring impacts (EUR +11m) as well as other working capital movements of EUR +29m. The latter include the development of net receivables of EUR +124m (including factoring), which was outweighed by other working capital movements, especially a decrease in trade and other payables. Consolidated net financial debt^[7] amounted to EUR 3,405m as of 31 March 2021 with a leverage ratio of 1.4x^[8], well below the company's self-defined target ratio of at or below 2.5x. This leaves comfortable leverage headroom with regards to the company's BBB-rating with stable outlook by Fitch. Financial outlook 2021 confirmed Telefónica Deutschland has invited to its virtual annual general meeting on 20 May 2021 to resolve upon the dividend proposal of EUR 0.18 per share for the financial year 2020. Telefónica Deutschland confirms its FY21 outlook while acknowledging the German government has recently adopted a new law for C-19 restrictions until 30 June 2021. The applicable measures depend on regional incidence levels. The company is continuously monitoring the C-19 environment and its further developments. Baseline 2020 Outlook 2021 Q1 21 Revenue EUR 7,532m Flat to slightly positive y-o-y +0.2% y-o-y OIBDA EUR 2,319m Broadly stable to slightly positive y-o-y +5.5% y-o-y Adjusted for exceptional effects Capex to Sales Ratio 14.5% 17-18% 12.3%
Link to detailed Data Tables
Further information
Telefónica Deutschland Holding AG
Investor Relations
Georg-Brauchle-Ring 50
80992 München
Christian Kern, Director Investor Relations; (m) +44 7517 999208
Marion Polzer, Head of Investor Relations; (m) +49 176 7290 1221
Eugen Albrecht, Senior Investor Relations Officer; (m) +49 176 3147 5260
(t) +49 89 2442 1010
ir-deutschland@telefonica.com
www.telefonica.de/investor-relations
Disclaimer:
This document contains statements that constitute forward-looking statements and expectations about Telefónica Deutschland Holding AG (in the following "the Company" or "Telefónica Deutschland") that reflect the current views and assumptions of Telefónica Deutschland's management with respect to future events, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations which may refer, among others, to the intent, belief or current prospects of the customer base, estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. Forward-looking statements are based on current plans, estimates and projections. The forward-looking statements in this document can be identified, in some instances, by the use of words such as "expects", "anticipates", "intends", "believes", and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements, by their nature, are not guarantees of future performance and are subject to risks and uncertainties, most of which are difficult to predict and generally beyond Telefónica Deutschland's control and other important factors that could cause actual developments or results to materially differ from those expressed in or implied by the Company's forward-looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Telefónica Deutschland with the relevant Securities Markets Regulators, and in particular, with the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin). The Company offers no assurance that its expectations or targets will be achieved.
Analysts and investors, and any other person or entity that may need to take decisions, or prepare or release opinions about the shares / securities issued by the Company, are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this document. Past performance cannot be relied upon as a guide to future performance.
Except as required by applicable law, Telefónica Deutschland undertakes no obligation to revise these forward-looking statements to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Telefónica Deutschland's business or strategy or to reflect the occurrence of unanticipated events.
The financial information and opinions contained in this document are unaudited and are subject to change without notice.
This document contains summarised information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Telefónica Deutschland.
None of the Company, its subsidiaries or affiliates or by any of its officers, directors, employees, advisors, representatives or agents shall be liable whatsoever for any loss however arising, directly or indirectly, from any use of this document its content or otherwise arising in connection with this document.
This document or any of the information contained herein do not constitute, form part of or shall be construed as an offer or invitation to purchase, subscribe, sale or exchange, nor a request for an offer of purchase, subscription, sale or exchange of shares / securities of the Company, or any advice or recommendation with respect to such shares / securities. This document or a part of it shall not form the basis of or relied upon in connection with any contract or commitment whatsoever.
These written materials are especially not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States, Canada, Australia, South Africa and Japan. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption there from. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.
^[1] Adjusted for exceptional effects. In Q1 21, exceptional effects amounted to EUR -15m of restructuring costs. In Q1 20, exceptional effects amounted to EUR -8m (EUR -9m losses from the sale of assets and EUR +1m restructuring income). ^[2] Mobile service revenue includes base fees and fees paid by the company's customers for the usage of voice, SMS and mobile data services; it also includes access and interconnection fees as well as other charges levied on partners for the use of the company's network. ^[3] Includes other expenses and impairment losses in accordance with IFRS 9 in the amount of EUR 20m in Q1 21 (compared to EUR 19m in Q1 20). ^[4] Adjusted for exceptional effects. In Q1 21, exceptional effects amounted to EUR -15m of restructuring costs. In Q1 20, exceptional effects amounted to EUR -8m (EUR -9m losses from the sale of assets and EUR +1m restructuring income). ^[5] Excluding additions from capitalised right-of-use assets. ^[6] Free cash flow pre dividends and payments for spectrum (FCF) is defined as the sum of cash flow from operating activities and cash flow from investing activities and does not contain payments for investments in spectrum as well as related interest payments. ^[7] Net financial debt includes current and non-current interest-bearing financial assets and interest-bearing liabilities as well as cash and cash equivalents and excludes payables for spectrum. ^[8] Leverage ratio is defined as net financial debt divided by OIBDA of the last twelve months adjusted for exceptional effects. -----------------------------------------------------------------------------------------------------------------------
2021-05-12 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------
Language: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 50 80992 München Germany Phone: +49 (0)89 24 42 0 Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1195400 MDAX TecDAX End of News DGAP News Service =------------
1195400 2021-05-12
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(END) Dow Jones Newswires
May 12, 2021 01:31 ET (05:31 GMT)