Telefónica Germany in the third quarter 2011:

Mobile revenue grows by 8 per cent

-Profitable customer growth: 252,000 new post-paid customers
-Non-P2P SMS revenue grows by 53 per cent
-Revenue and profit increased sharply
MUNICH. Telefónica Germany continues its story of growth in the third quarter. Thus confirming its positive development in previous quarters, despite a difficult and aggressively priced market. The number of total accesses rose to 24.3 million. Both revenue and profit (OIBDA) increased sharply, in particular through the high speed of growth in the new customer and data business. Non-P2P SMS revenue leapt by 53 per cent year-on-year.
The number of total accesses (mobile, fixed network, pay-tv, wholesale) rose by 8.4 per cent to 24.3 million year-on-year, of which 20.7 million are mobile and DSL customers. Over the same period of time the number of new mobile customers shot up by 12 per cent. Contract net additions reached to an impressive 252,000, which corresponds to an increase of 182 per cent year-on-year in the third quarter. The customer and revenue growth was mainly driven by the successful 'O2 Blue' product portfolio.

Successful partner business

Alongside Tchibo, FONIC is making a very large contribution to the successful growth of the partner business. The subsidiary, one of the most prosperous mobile discounters on the market, was able to increase its customer base by 33 per cent over the same period of 2010. The partnership with Türk Telekom and the launch of 'Türk Telekom Mobile' tariff has proved effective.

Mobile data business drives growth

"Our success shows that we are right on track with our strategy. The mobile data business already contributes to our consistent monetisation," says René Schuster, CEO of Telefónica Germany. "The entry into the smartpone business of our subsidiary FONIC brings additional momentum to the market." The number of mobile Internet users grew by 47 per cent over previous year. Overall the mobile data business was a significant driver of our growth with Non-P2P SMS revenue increasing by 53 per cent year-on-year.
"Despite a toughly contested market environment we have managed to raise mobile revenue by 8 per cent year-on-year," says Rachel Empey, CFO of Telefónica Germany. Without the lowering of the mobile termination charge, growth would have actually been 14.5 per cent. "We aim to continue our success story and focus on building on profitable growth," adds Empey.
3rd quarter 2011
Since the first quarter 2011 the company was also able to make consistent gains in monthly ARPU which increased by 7 per cent to 14 euros compared to the first quarter. That was especially related to the increasing data usage per customer. Telefónica Germany is speeding up with the development of the consolidated operating result (OIBDA). Excluding restructuring charges in the third quarter of 2010, OIBDA grew by 3.3 per cent to 314 million euros year-on-year. OIBDA margin rose to 24.8 per cent and is thus 0.3 percentage points higher than in the same quarter of previous year.

Very satisfied customers

In order to run a successful business one of the key elements for Telefónica Germany is having a high customer satisfaction level. 'Kundenmonitor Deutschland 2011' again singled out Telefónica Germany for praise, confirming for the fifth time in a row Telefónica as the network operator with the most satisfied mobile customers in the German market.
Telefónica Germany GmbH & Co. OHG and its brands O2 and Alice belong to Telefónica Europe and are part of the Spanish telecommunication group Telefónica S.A. The Company offers its German private and business customers postpaid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS and UMTS technologies. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed internet. "Kundenmonitor Deutschland 2011" honoured Telefónica Germany as the network operator with the most satisfied mobile phone customers in the German market for the fifth time in a row. Telefónica Europe has more than 58 million mobile and fixed network customers in Great Britain, Ireland, the Czech Republic, Slovakia and Germany.