FRANKFURT, Nov 10 (Reuters) - Telefonica Deutschland reported a 15-percent drop in quarterly core earnings as it increased spending on marketing to lure subscribers in a highly competitive German mobile phone market.
The company, controlled by Spain’s Telefonica, reported on Monday a decline in fiscal third-quarter operating income before depreciation and amortisation (OIBDA) excluding special items to 248 million euros ($309.40 million). That was below analysts’ mean forecast for 251 million in a Reuters poll.
Telefonica Deutschland has bought the German business of Dutch peer KPN, which operates under the E-Plus brand, to create Germany’s largest telecoms operator in terms of customers.
Including E-Plus, Telefonica Deutschland expects fourth-quarter OIBDA, excluding special items to be slightly lower than 350 million euros and expects revenues of around 2 billion euros. ($1 = 0.8015 euro) (Reporting by Harro ten Wolde; Editing by Maria Sheahan)