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Germany's Telefonica O2 Passes 10 Million Contract Customer Mark
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Germany's Telefónica O2 has confirmed its profitable growth in 2012 as the number of contract customers exceeded the 10 million threshold for the first time.
The company's total customer base (wireless, fixed network, wholesale) also grew by 3.6 percent over the year, reaching 25.4 million at the end of 2012. New contract customers were the main contributing factor, which rose by 219,500 in the fourth quarter.
The company also made gains in wireless service revenues. It increased by 7.0 percent over the course of the year compared to 2011. Wireless revenues (including the hardware business) increased by 6.6 percent in the same evaluation period. If mobile termination rates are not taken into account, wireless service revenues increased by 7.3 percent and wireless revenues by 6.9 percent. Telefónica Deutschland revenues also increased in 2012, reaching EUR 5.2 billion at the end of the year.
"For the first time in the company's history, we have over 10 million contract customers," says René Schuster, CEO of Telefónica Deutschland. "The customer needs in the market have changed. With our O2 Blue Portfolio we meet these needs precisely."
The growth engine is still the data business. Non-SMS data revenues increased by 30.7 percent in the course of 2012 compared with the same period of the previous year, non-SMS data revenues now amounts to 56.7 percent of the total data revenues. Data ARPU increased by 9.3 percent over the last year compared with the same period in 2011. The average monthly revenue per user (ARPU) showed solid progress in 2012.
"Despite strong competition, we continue to perform very well in the market with this result," says Rachel Empey, CFO of Telefónica Deutschland. "Achieving profitable and sustainable growth is still crucial for us".
Operating Income before Depreciation and Amortization (OIBDA) also moved in a positive direction. This increased by 11.3 percent over the course of 2012 compared with the same period of time in 2011. The OIBDA margin also grew by 1.7 percentage points during the same period.
Increased investments were particularly influenced by accelerating LTE network rollout. Over the full year 2012, investments increased by 9.2 percent compared to last year. In parallel, further investments were used to increase of capacity in the 3G network as well as the development of new products and services.
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