Second quarter 2023:O2 Telefónica increases revenues and earnings due to successful strategy

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  • Continued strong demand for mobile services gives O2 Telefónica momentum despite challenging economic environment
  • In the second quarter of the financial year, the telecommunications provider increases its revenue by 4.4 per cent and OIBDA adjusted for special effects by 2.7 per cent due to robust mobile service revenues
  • Mobile service revenue increased 4.3 per cent, handset revenue was up 6.1 per cent and fixed line revenue was up 1.5 per cent
  • Number of mobile postpaid contracts (excluding M2M) increased by 302,000 customers with low churn of 0.8 percent
  • O2 Telefónica covers 90 percent of the population with 5G at the end of the second quarter
  • Narrowing FY23 revenue and OIBDA outlook to ‘upper-range of low single-digit % growth’ on the back of strong H1 23 results and continued momentum

Statement from CEO Markus Haas on the results of the second quarter 2023
"We are maintaining our strong momentum and continued to grow profitably in the second quarter of 2023 despite a slowdown in the economy. The digitalisation of Germany is based on mobile data. We see this in the steadily increasing demand for our products and services among end customers and businesses. Only with high-performance telecommunications networks can the digitalisation of our country succeed. This is the basis for sustainable prosperity in Germany. As O2 Telefónica, we are investing heavily in our networks and now cover 90 percent of the population with 5G. In addition, we will continue to work hard to ensure that the right course is set in politics and regulation for the successful digitalisation of Germany in the coming months," says O2 Telefónica CEO Markus Haas. The telecommunications provider O2 Telefónica continued the growth momentum of the previous quarters in the second quarter of the 2023 financial year and again grew profitably across the board. Revenues increased by 4.4 per cent to 2.091 billion euros. Mobile service revenue increased by 4.3 percent to 1.463 billion euros. Handset revenue increased by 6.1 per cent to 419 million euros. Fixed line revenue climbed by 2.1 per cent to 206 million euros.

302,000 new mobile phone contract customers

Driven by its strong core brand O2, the number of new mobile contract customers (excluding M2M) was 302,000. The monthly churn rate of the core brand O2 amounted to 0.8% and was thus once again below the low value of 1.0% in the first quarter. This means that less than one percent of O2 customers switched to another provider per month in the second quarter. With more than 42 million mobile connections, the company continues to connect the most people in Germany to mobile communications.

Around 90 percent of the German population covered by 5G

O2 Telefónica continues to push ahead with the expansion of its mobile network and at the end of the second quarter covered around 90 per cent of the German population with the 5G mobile standard. The company has thus achieved its year-end target ahead of schedule already by mid-year and is well on track for nationwide coverage latest by the end of the year 2025.

Further earnings growth

OIBDA adjusted for special effects increased as planned in the reporting period and was 2.7 percent higher at 646 million euros. Total profit for the period amounted to 53 million euros, compared to 41 million euros in the same period of the previous year.

O2 Telefónica drives inclusion and diversity

In the second quarter, the company continued to consistently implement its ESG agenda and drove forward topics such as diversity and inclusion with new partnerships. For example, O2 Telefónica is participating in the "Alliance for Digital Competence" initiative of the Bavarian State Ministry for Digital Affairs. Here, the Bavarian state government and digital-savvy companies in Bavaria are joining forces to bring Bavarian citizens along with them in the digitalisation process. All citizens in Bavaria should have the opportunity to develop their digital skills free of charge and in line with their needs.

Financial Outlook Fiscal Year 2023

O2 Telefónica continued its robust growth path in the first half of 2023 as expected, delivering strong operational and financial performance with continued momentum and supported by good progress of its 5G network roll-out. The company has consistently implemented its ‘more-for-more’ strategy with new tariff portfolios underpinning its FY23 growth ambitions. Consequently, Telefónica Deutschland is narrowing its full-year 2023 outlook for both, revenues and OIBDA, to ‘upper-range of low single-digit % growth’. Further details on the business development and the outlook for the year 2023 at Financial publications.


O2 Telefónica is a leading full-service provider of telecommunications services for consumers and business customers. The portfolio of the core brand O2 and various secondary and partner brands includes not only traditional telephony and Internet connections but also innovative digital services in the area of the Internet of Things and data analysis. In mobile communications, O2 Telefónica serves more than 44 million mobile lines (incl. M2M - as of March 31, 2022). No other network operator connects more people in this country. The company's high-performance, award-winning mobile network reaches over 99 percent of the population. In the fixed network, O2 Telefónica offers its customers the greatest technological diversity and geographical availability of any provider in Germany. Telefónica Deutschland Holding AG is listed on the TecDAX and MDax and has been part of the Eurostoxx 600 since June 2022. In fiscal year 2022, the company generated revenues of EUR 8.2 billion with around 7,500 employees. The company is majority-owned by the Madrid-based Spanish telecommunications group Telefónica S.A., one of the largest telecommunications groups in the world.