Revenues mainly driven by mobile data

At the end of June 2014, Telefónica Deutschland has 25.1 million customer accesses. The mobile access base stands at 19.4 million, while fixed line accesses amount to 5.7 million. The postpaid segment has a positive influence in this context. Postpaid mobile net additions for the first six months of 2014 reach 230 thousand, with second quarter's figure (152 thousand) more than doubling the average registered over the last four quarters.

Mobile data revenues in the first half of 2014 total 704 million Euro (-1.4% year-on-year), representing 49% of wireless service revenues (+0.9 percentage points year-on-year). In the second quarter, mobile data revenues register a 1.5% year-on-year decline to 354 million Euro. Non-SMS data revenues continue being the main driver for revenue growth, reaching 508 million Euro in the first half of 2014 (256 million Euro in the second quarter), with a year-on-year increase of 10.6% and 9.1% respectively. The share of non-SMS data revenues over total data revenues further increases to 72.3% for the first half year, 7.8 percentage points higher than in the same period of 2013, which is the result of the successful execution of the Company's data monetization strategy. SMS revenues continue to show a stabilization in their rate of decline (-21.6% year-on-year in the second quarter vs. -24.6% in the first quarter).

Telefónica Deutschland's revenues for the first half of 2014 period total 2,284 million Euro (1,162 million Euro in the second quarter), a year-on-year performance of -6.5% ex MTR cuts (-6.6% in reported terms). With reference to the development of the first two quarters of 2014, there is a positive trend. In the second quarter, the revenue performance is -4.3% year-on-year ex MTR cuts (-4.4% in reported terms), a significant improvement compared to the previous quarter (-8.7% year-on-year ex MTR cuts; -8.8% in reported terms).

Wireless service revenues amount to 1,435 million Euro in the first half of the year, a decline of 3.0% year-on-year ex MTR cuts (-3.1% in reported terms). In the second quarter, wireless service revenues reach 728 million Euro and show an improved performance over previous quarters (-2.5% year-on-year ex MTR cuts and -2.7% in reported terms).

Wireline revenues reach 581 million Euro in the first half of 2014 (287 million Euro in the second quarter) which represents a year-on-year decline of 7.3% and 7.6% respectively, driven by a declining DSL retail customer base and a tougher market environment in the second quarter.

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