Telefonica Deutschland flags higher dividend after Q2 core profit beat

FRANKFURT, July 27 (Reuters) - Telefonica Deutschland said on Wednesday it expected to pay a higher dividend for 2016 as it reported better-than-expected quarterly core earnings, reaping the fruits of the intergration of E-Plus, which it bought almost two years ago.

The company, which is majority-owned by Spain’s Telefonica , said second-quarter operating income before depreciation and amortisation (OIBDA), excluding special items rose 1.2 percent to 459 million euros.

That was slightly ahead of the average of 456 million euros in a Reuters poll. {nL8N1AC1E0]

Telefonica Deutschland said it expected to pay a 2016 dividend of 0.25 euro per share, up from 0.24 euro last year, and a flagged a further dividend increase over 2017 and 2018.

That is in line with analysts’ expectations.

The telecoms operator confirmed its 2016 outlook for low to medium single-digit percentage higher OIBDA. (Reporting by Harro ten Wolde; Editing by Maria Sheahan)