July 25, 2018 / 5:37 AM / a year ago

Telefonica Deutschland confirms guidance on steady Q2 showing

FRANKFURT, July 25 (Reuters) - Telefonica Deutschland reported a decline in revenues and a net loss in the second quarter, but played up underlying growth in its core profits and said it was on track to hit its targets this year.

Revenues declined by 0.7 percent to 1.758 billion euros ($2.05 billion) in the quarter to June at Germany’s No.3 mobile operator by revenues, which is majority owned by Spain’s Telefonica.

After stripping out regulatory effects, chiefly an EU crackdown on international roaming charges, they rose by 0.1 percent as the company added a third of a million contract customers and mobile data use grew by 54 percent.

“We are on track for growth thanks to our successful data monetisation and are constantly increasing our profitability,” CEO Markus Haase said in a statement.

Operating Income Before Depreciation and Amortization (OIBDA) grew by 3.9 percent but, after taking into account exceptional effects and excluding regulatory effects, gained by 6.8 percent to 504 million euros, the company said.

Telefonica reported a net loss of 12 million euros, after a loss of 40 million euros in the same period a year earlier.

The company confirmed guidance for broadly stable revenues in 2018 as a whole, and flat-to-positive growth in OIBDA - both after stripping out regulatory effects. ($1 = 0.8561 euros) (Reporting by Douglas Busvine Editing by Victoria Bryan)

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