EQS-News:Telefónica Deutschland Holding AG: Robust start to the year confirming FY23 outlook with ongoing commercial momentum driving sustained operational & financial performance
EQS-News: Telefónica Deutschland Holding AG / Key word(s): Quarterly / Interim Statement Telefónica Deutschland Holding AG: Robust start to the year confirming FY23 outlook with ongoing commercial momentum driving sustained operational & financial performance 10.05.2023 / 07:25 CET/CEST The issuer is solely responsible for the content of this announcement. MUNICH, 10 May 2023
Telefónica Deutschland – interim statement for January to March 2023 Robust start to the year confirming FY23 outlook with ongoing commercial momentum driving sustained operational & financial performance
- Continued commercial momentum on back of own brand strength and return to low churn levels, +368k mobile postpaid and +25k fixed BB net adds
- Strong revenue growth of +8.0% y-o-y driven by sustained MSR momentum & another record quarter of handset sales
- Solid OIBDA growth of +1.7% % y-o-y supported by enhanced MSR quality
- Excellent 5G roll-out progress within normalised C/S envelope - well on track to deliver 5G pop coverage of ~90% by YE23
- ESG leadership extended & well on track to deliver a sustainable digital future
- Confirming FY23 outlook & proposing dividend of EURc 18/share to AGM on 17 May-23
- Supplies increased +13.4% y-o-y to EUR 671m in Q1 23 with the positive effects from the MTR-cuts6 more than off-set by volume related higher hardware cost of sales. Connectivity-related cost of sales and hardware cost of sales accounted for 31% and 66% of Q1 23 supplies, respectively.
- Personnel expenses were up +5.6% y-o-y to EUR 162m in Q1 23 reflecting the general salary increases as of Sep-22 and the introduction of statutory minimum wages mainly in customer service as of Oct-22 in combination with a slightly higher FTE-base.
- Other operating expenses (other Opex) increased +8.6% y-o-y to EUR 663m in Q1 23 reflecting commercial activity in the quarter, technology transformation as well as tough comps for energy as Q1 22 still benefitted from energy supplies secured at favourable FY21 pricing. Commercial and non-commercial costs accounted for 65% and 32% of other Opex in Q1 23, respectively. Group fees came to EUR 9m both, in Q1 23 and Q1 22.
|ACTUAL 2022 (1)||OUTLOOK 2023 (2)||ACTUAL Q1 23|
|Revenues||EUR 8,224m||Low single-digit percentage year-on-year growth||EUR 2,101m, + 8.0% y-o-y|
|OIBDA Adj. for except. effects||EUR 2,539m||Low single-digit percentage year-on-year growth||EUR 612m, + 1.7% y-o-y|
|CapEx to Sales Ratio||14.7%||Around 14 %||11.7%|
The Company has invited to its annual general meeting on 17 May 2023 to resolve upon the dividend proposal of EUR 0.18 per share for the financial year 2022. This dividend proposal is in-line with the dividend floor for the financial years 2021-23 announced at the company’s Strategy Update on 19 January 2021. Hereby, Telefónica Deutschland confirms its strong commitment to attractive shareholder remuneration while financial flexibility remains the company’s foremost priority during unprecedented times. 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) +49 179 9000 208 Marion Polzer, CIRO, Head of Investor Relations; (m) +49 176 7290 1221 Eugen Albrecht, CIRO, Senior Investor Relations Officer; (m) +49 176 3147 5260 (t) +49 89 2442 1010 firstname.lastname@example.org 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. 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| Adjusted for exceptional effects. Both, in Q1 23 and in Q1 22, exceptional effects amounted to EUR -1m of restructuring costs.  -3.4% y-o-y mainly on a revenue-neutral technical base adjustment in prepaid in Q4 22.  Introduction of a stricter active SIM-card definition.  Excluding MTR-cut from EURc 0.55 to EURc 0.40 as of 1 Jan-23  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.  MTR-cut from EURc 0.55 to EURc 0.40 as of 1 Jan-23.  Operating expenses include impairment losses in accordance with IFRS 9 in the amount of EUR 26m in Q1 23 (EUR 20m in Q1 22).  Adjusted for exceptional effects. Both, in Q1 23 and in Q1 22, exceptional effects amounted to EUR -1m of restructuring costs.  CapEx includes additions to property, plant and equipment and other intangible assets while investments for spectrum licenses and additions from capitalised right-of-use assets are not included.  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.  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.  Leverage ratio is defined as net financial debt divided by OIBDA of the last twelve months adjusted for exceptional|