February 24, 2015 / 7:20 AM / 5 years ago

UPDATE 1-E-Plus buy pushes Telefonica Deutschland to Q4 loss

* Q4 OIBDA loss of 46 mln euros vs 47 mln euro loss expected

* Sees 250 mln euros in synergies from E-Plus in 2015

* Sees 2015 OIBDA up by more than 10 pct (Adds Q4 results, consensus, outlook)

FRANKFURT, Feb 24 (Reuters) - Telefonica Deutschland swung to a fourth-quarter core loss as integration costs for its E-Plus acquisition weighed, it said on Tuesday.

Telefonica Deutschland, which is controlled by Spain’s Telefonica, last year bought the German business of Dutch peer KPN, which operates under the E-Plus brand, for 8.6 billion euros ($9.7 billion) to create Germany’s largest mobile operator in terms of customers.

Including integration costs, Telefonica booked a fourth-quarter operating loss before depreciation and amortisation (OIBDA) of 46 million euros, down from a 373 million profit in the previous year.

That was broadly in line with the mean forecast for a 47 million euro loss in a Reuters poll..

Telefonica Deutschland said it expected 2015 OIBDA to increase by more than 10 percent from a pro-forma base of 1.46 billion euros, including E-Plus and excluding special items.

Telefonica Deutschland is in the process of cutting 18 percent of full-time jobs to help achieve cost savings from the takeover.

The company said it expected to generate 250 million euros in synergies this year from the acquisition of E-Plus. ($1 = 0.8821 euros) (Reporting by Harro ten Wolde; Editing by Maria Sheahan and Georgina Prodhan)

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