DGAP-News: Telefónica Deutschland Holding AG / Key word(s): Quarterly / Interim Statement 
Telefónica Deutschland Holding AG: Solid start to the year with profitable growth - confirming FY21 outlook 
2021-05-12 / 07:30 
The issuer is solely responsible for the content of this announcement. 
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MUNICH, 12 May 2021 
Interim statement for January to March 2021 
Solid start to the year with profitable growth - confirming FY21 outlook 
- Good operational and financial momentum despite C-19 headwinds 
- Ongoing trading momentum supported by increased online channel activities and historic low churn levels 
- Revenues up +0.2% y-o-y in Q1 21 - operational trends in-tact across all revenue lines 
- Strong OIBDA^[1] growth of +5.5% y-o-y in Q1 21 driven by improved revenue quality and effective C-19 cost management 
- C/S ratio of 12.3% in Q1 21 - executing 'investment for growth' programme with back-end loaded annual phasing 
- Confirming FY21 outlook while closely monitoring C-19 environment 
First quarter 2021 operational & financial highlights 
In a hard lockdown quarter, Telefónica Deutschland delivered a solid start to the year with good operational and 
financial performance in a rational market environment. Ongoing restrictions continued to weigh on commercial 
activities and international roaming revenues. O[2 ]shops were closed for most of the quarter impacting trading 
dynamics while online channels largely compensated for lower gross add volumes. Prepaid demand for data packs was muted 
due to WiFi offloading on the back of less mobility. Still, the O[2] Free portfolio continued to be well received, 
leveraging historic low churn levels on the back of the achieved equalisation of the O[2] network quality and 
continuously improving services. 
After the largest 4G network expansion programme in the company's history with over 11,000 new 4G elements being 
installed in 2020, Telefónica Deutschland now significantly progressed with its 5G network expansion. The 5G network 
already operates in over 30 German cities with around 1,000 antennas, leveraging the company's 3.6 GHz spectrum to 
offer great customer experience as also confirmed by the recent 5G network test of Speedcheck. Telefónica Deutschland's 
5G network was ranked by Speedcheck a close second for available 5G speed with a meaningful margin to the third ranked 
operator. Telefónica Deutschland targets to reach >30% of 5G pop-coverage by YE21, 50% by YE22 and close to full 
coverage by YE25. 
In April, the company was awarded with a 'good' rating in the CHIP magazine's fixed network test, which represents a 
significant improvement compared to last year. 
Telefónica Deutschland's ESG strategy is fully integrated in the company's overall business strategy and the launch of 
the second Responsible Business Plan in March underpins its target to be carbon neutral by 2025. 
 
 
Operating performance 
Mobile business 
Mobile postpaid continued strong trading momentum supported by online channels (O[2] Postpaid 40% of gross add share 
in online). +220k mobile postpaid net additions in Q1 21 compared to +188k in Q1 20 (+16.8% y-o-y) on the back of 
continued historic low churn and sustained strong customer demand for the well-received O[2] Free portfolio as well as 
a solid performance of partners. 
M2M improved to +42k net additions in Q1 21 compared to +39k in Q1 20. 
Mobile prepaid registered -109k net disconnections in Q1 21 versus -407k in Q1 20 supported by some revenue neutral SIM 
card reactivations while the market trend of prepaid to postpaid migration continued. 
Postpaid churn improved +0.2 p.p. y-o-y in Q1 21 and remained on historic low levels of 1.3%. Churn in the O[2] brand 
even saw an improvement of +0.3 p.p. y-o-y in Q1 21 to 1.0%. The positive churn development is providing a clear proof 
point for the excellent customer experience on the O[2 ]network as well as some C-19 related lower churn entries. As a 
result, the implied annualised churn rate of the O[2] brand improved to 11.6% in Q1 21 compared to 15.7% in Q1 20. 
Telefónica Deutschland's mobile customer accesses increased +1.8% y-o-y and reached 44.4m as of 31 March 2021 driven by 
strong +4.7% y-o-y growth of the mobile postpaid base ex M2M which stood at 23.8m accesses at the end of the quarter. 
As a result, mobile postpaid share further increased, now accounting for 53.6% of the company's total mobile access 
base, up +1.5 p.p. y-o-y. M2M accesses totalled 1.5m as of 31 March 2021, up +18.0% y-o-y while the mobile prepaid base 
continued to decline -2.6% y-o-y to 19.2m. 
The LTE customer base grew +5.6% y-o-y to 26.7m accesses as of 31 March 2021, reflecting the sustained demand for 
high-speed mobile data services. Hence, LTE-penetration across the base increased +2.5 p.p. y-o-y to 62.0%. LTE 
penetration in postpaid increased to an even significantly higher level of 76%. 
ARPU developments in Q1 21 mainly reflect C-19 related roaming headwinds due to ongoing travel-restrictions while 
operational trends are in-tact. ARPU accretive effects from the successful O[2] Free portfolio and value-added services 
were offset by continued C-19 related roaming drags. Blended mobile ARPU was down -1.4% y-o-y to EUR 9.7 in Q1 21. 
Prepaid ARPU was EUR 6.0, up +1.2% y-o-y in Q1 21 mainly because of fewer inactive SIM-cards. Postpaid ARPU declined by 
-3.9% y-o-y to EUR 13.2 in Q1 21, mainly reflecting the before mentioned C-19 headwinds. O[2] postpaid ARPU was down 
-1.4% y-o-y in Q1 21 while excluding the C-19 related loss of roaming revenues, trends are in-tact posting +0.5% y-o-y 
ARPU-growth in Q1 21. 
Fixed business 
The fixed broadband customer base increased +1.0% y-o-y to 2.3m accesses at 31 March 2021, driven by a strong increase 
of the VDSL base to 1.8m, +7.0% y-o-y. VDSL represents 80% of the fixed broadband customer base. However, fixed 
broadband registered -7k net disconnections in Q1 21 in a market focused on high speed fixed connectivity during 
lockdown. Therefore, the demand for VDSL (+9k net additions in Q1 21) remained solid. 
Fixed churn was broadly stable (-0.1 p.p. y-o-y) at 1.0% in Q1 21. 
Fixed broadband ARPU continued its upward trend reflecting the increasing share of VDSL customers and stood at EUR 23.9 
in Q1 21, posting +0.7% y-o-y growth. 
 
Financial performance 
Revenues continued to grow and totalled to EUR 1,850m in Q1 21, +0.2% y-o-y, with operational trends in-tact across all 
revenue lines while reflecting C-19 headwinds due to the ongoing lockdown measures. Ex C-19 impacts of EUR -24m, 
revenue growth would have been +1.3 p.p. higher in Q1 21. 
Mobile service revenues^[2] (MSR) were EUR 1,307m in Q1 21, -0.3% y-o-y, with C-19 impacts of EUR -24m offsetting 
strong own brand and solid partner performance. Ex C-19 impacts MSR^2 growth would have been +1.8 p.p. higher in Q1 21. 
Handset revenues grew +2.3% y-o-y to EUR 347m in Q1 21 as a result of continued strong demand for high value handsets 
while also reflecting seasonality. 
Fixed revenues continued to grow, up +3.9% y-o-y to EUR 200m in Q1 21, driven by VDSL customer base growth with comps 
naturally getting tougher. 
Other income totalled EUR 30m in Q1 21, up +16.3% y-o-y. 
Operating expenses included EUR -15m of restructuring expenses mainly for customer service reorganisation while 
decreasing -1.1% y-o-y to EUR 1,333m in Q1 21. 
- Supplies amounted to EUR 590m in Q1 21, down -2.4% y-o-y reflecting an MTR cut from EURc 0.9 to EURc 0.78 as of 1 
Dec-20, a decrease of connectivity-related costs due to lower roaming revenues as well as lower hardware cost of sales 
because of a different handset mix. Hardware cost of sales and connectivity-related cost of sales accounted for 56% and 
40% of supplies, respectively. 
- Personnel expenses decreased -6.4% y-o-y and totalled EUR 140m (including EUR -2m of restructuring expenses) in Q1 21 
due to a lower FTE base and received social security payments for employees of temporarily closed own shops whose 
salaries the company topped up to 100%. 
- Other operating expenses^[3]increased +1.4% and stood at EUR 603m in Q1 21, reflecting increased restructuring 
expenses (EUR -13m vs EUR +0m in prior year) as well as seasonal effects while efficiency gains continued. Commercial 
costs (66%) were broadly stable y-o-y reflecting trading, channel mix and phasing of marketing spend. Non-commercial 
costs accounted for 29%. Group fees were EUR 10m in Q1 21 (EUR 8m in prior year) including a EUR 2m provision for prior 
periods. 
OIBDA^[4] growth accelerated sequentially and increased +5.5% y-o-y to EUR 562m in Q1 21 mainly as a result of improved 
revenue quality and effective C-19 cost management while the ongoing C-19 related roaming drag weighed. Ex C-19 impacts 
of EUR -5m, OIBDA^4 growth would have been +1.0 p.p. higher in Q1 21. OIBDA^4 margin stood at 30.3% in Q1 21 (+1.5 
p.p. y-o-y) reflecting the before mentioned effects. 
Depreciation & Amortisation totalled EUR 574m in Q1 21, up +3.8% y-o-y. The increase in D&A is due to a combination of 
the earlier 3G switch off by YE21 and higher RoU asset amortisation while somewhat offset by the UMTS licenses having 
reached their end of useful life at YE20. 
Operating income in Q1 21 stood at EUR -27m compared to EUR-29m in the prior year. 
Net financial expenses accounted for EUR -10m in Q1 21 versus EUR -15m in Q1 20 mainly due to lower financial expenses 
including less interest payments as a result of the repayment of a EUR 500m bond in February 2021. 
Income tax was EUR -2m in Q1 21. 
Total profit for the period stood at EUR -40m in Q1 21 compared to EUR -44m in Q1 20. 
CapEx^[5]increased +1.8% y-o-y to EUR 228m in Q1 21 with a C/S ratio of 12.3%. The CapEx^5 deployment comes with 
backend-loaded annual phasing as Telefónica Deutschland is executing its 'investment for growth' programme to capture 
valuable revenue and OIBDA^4 growth opportunities. 

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