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Quarterly results:O2 Telefónica starts the 2024 financial year with further growth and increased profitability
  • O2 Telefónica continues the profitable growth trajectory of previous years in the first quarter and is on track to achieve the outlook for the fiscal year 2024
  • The telecommunications provider gains 157,000 post paid net additions and grows in the fixed-network with an increase of 3,000 customers
  • Mobile service revenue increases by 0.7 % and by 2.3 % when adjusted for regulatory effects
  • After exceptionally strong prior-year quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) up 5.1 % with stable revenue development
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Statement Markus Haas, CEO O2 Telefónica
Telecommunications provider O2 Telefónica has made a good start to the 2024 financial year and continued its profitable growth trajectory in the first quarter. "We have made a strong start to 2024 and once again delivered profitable growth. We are therefore fully on track to achieve our outlook for the fiscal year 2024. The momentum in our core business is intact. In 2024, we will continue to do everything we can to offer our customers an outstanding mobile and fixed network experience at an excellent price-performance ratio. By making our customers' lives better with our products and services, we are helping to drive digitalization in Germany in a responsible manner", says Markus Haas, CEO of O2 Telefónica.
O2 Telefónica continues the profitable growth trajectory of previous years in the first quarter
Revenue remained stable at 2.098 billion euros from January to March 2024 after an exceptionally strong prior-year quarter. Mobile service revenue (MSR) rose again by 0.7 % to 1.418 billion euros in the first quarter of 2024 despite the negative impact of the halving of mobile termination charges at the beginning of the year; excluding these regulatory effects, the MSR grew by 2.3 % year-on-year. Revenue in the fixed-line business continued its growth trajectory with an increase of 3.7 % to EUR 210 million. The same quarter of the previous year included an unprecedented record increase in handset sales of 24 %, which declined this quarter. EBITDA adjusted for exceptional effects increased by 5.1 % to 644 million euros. This improvement is the result of the company's focus on putting value before volume growth ("value-over-volume") and on successful cost management.
157,000 net new mobile contract customers in core business
Credits: O2 Telefonica / Fernanda Vilela
The number of post paid net additions increased by more than 157,000 in the first quarter. Starting with the financial year 2024, O2 Telefónica reports mobile customer accesses ex 3rd party MNO-accesses and 3rd party MNO-accesses separately. In addition to the core brand O2 and brands such as Blau, O2 Telefónica also counts customers of the long-term secondary and partner brands such as ALDI TALK (Medion Mobile), Tchibo MOBIL, NettoKOM, AY YILDIZ and Ortel Mobile and service providers such as Freenet as mobile customer accesses ex 3rd party MNO-accesses. Growth in the first quarter of 2024 was mainly due to the continued strong performance of the core brand O2. The promotion launched in January with an improved combined benefit for families made a positive contribution to this development. The monthly churn rate was 1 %. This means that only one percent of O2 customers switch to another provider during the month. Of the company's more than 45 million mobile accesses, 33.7 million customers were mobile accesses ex 3rd party MNO-accesses at the end of the first quarter. The fixed-line business grew against the market trend in the first quarter and once again recorded growth with an increase of 3,000 customers. Sales increased by 3.7 % to 210 million euros compared to the previous year. The growth driver here was the business with cable and fiber optic connections.
Network expansion accelerated
O2 Telefónica has once again accelerated the expansion of the mobile network in the first quarter of 2024. This includes the expansion of 5G, network densification with 4G and the closing of dead spots. "In cities, in the countryside and along transport routes, customers will have an even better network experience," says Markus Haas. The company now supplies more than 95 % of German locations with 5G. In the first quarter of 2024, the O2 mobile network grew by around 400 additional mobile sites. 28,000 locations ensure that customers can surf the web and make calls smoothly across Germany in O2 Telefónica's network. The telecommunications provider implemented around 2,000 expansion measures from January to March.
O2 Telefónica improves energy efficiency in the grid
In the first quarter, O2 Telefónica also reported on the company's progress in the three dimensions of environment, social affairs and governance in the Corporate Responsibility Report 2023. One of the highlights was the fact that electricity consumption in the network remained stable despite a significant increase in data volume. While the data volume in the mobile network rose by 40 % to 4.8 billion gigabytes in the reporting period in 2023, energy consumption in the network remained almost constant at 760 GWh after 757 GWh thanks to extensive energy-saving measures.
Outlook confirmed - O2 Telefónica intends to continue its growth trajectory in 2024
The company confirms its outlook with the figures for the first quarter of 2024: O2 Telefónica plans to continue its sustained growth trajectory in the 2024 financial year. Building on the good momentum of recent years and the three-year "Accelerated Growth & Efficiency Plan" strategy program, the company is focusing on strengthening the resilience of its business model. The plan is an integral part of Telefonica S.A.'s GPS strategy. GPS stands for 'Growth, Profitability and Sustainability'. In summary, O2 Telefónica confirms the outlook for the 2024 financial year:
  • Slightly positive sales growth compared to the previous year.
  • EBITDA growth adjusted for special effects in the low to low-mid single-digit percentage range compared to the previous year.
  • An investment ratio of 13 percent to 14 percent.
Reference value 2023 Outlook for 20242)
Sales revenue 8,614 million euros Slightly positive compared to previous year
EBITDA1) adjusted for special effects 2,617 million euros Growth compared to previous year in the low to lower mid single-digit percentage range
Investment ratio 13.2 Percent 13 - 14 Percent
1) For better comparability, the Telefónica Deutschland Group will adjust its reporting to general market standards from January 1, 2024 and rename "OIBDA" to "EBITDA". By definition, this is the operating result less depreciation and amortization.
2) Including regulatory charges of approximately EUR -70 to -80 million at revenue level and approximately EUR -20 to -25 million at EBITDA level
Q1 Data Tables
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Markus Haas - Portrait
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Quarterly Results Q1 2024 - Visual 16:9
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O2 Tower in Munich
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Quarterly Results Q1 2024 - Visual 1:1
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O2 Telefónica is a leading full-service provider of telecommunications services for private and business customers. The portfolio of the core brand O2 and various secondary and partner brands includes traditional telephony and internet connections as well as innovative digital services in the area of the Internet of Things and data analysis. In mobile communications, O2 Telefónica serves over 45 million mobile lines (incl. M2M - as at 31.12.2023). No network operator connects more people in this country. The company's high-performance, award-winning mobile network reaches over 99% of the population. In the fixed network, O2 Telefónica offers its customers the greatest technological diversity and geographical availability of any provider in Germany. In the 2023 financial year, the company generated revenue of EUR 8.6 billion with around 7,500 employees. The company is majority-owned by the Spanish telecommunications group Telefónica S.A., based in Madrid, one of the largest telecommunications groups in the world.


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Telefónica Deutschland Holding AG published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:04:09 UTC.