July 29, 2020 / 6:42 AM / 16 days ago

Telefonica Deutschland second-quarter profit down 5% but confirms outlook

FILE PHOTO: Markus Haas, Chief Executive Officer at Telefonica Deutschland Holding AG, speaks during a news conference on the mobile communication summit in Berlin, Germany June 16, 2020. John Macdougall/File Photo

BERLIN (Reuters) - Telefonica Deutschland (O2Dn.DE) reported a 5.1% decline in core profits in the second quarter on Wednesday as travel restrictions imposed due to the coronavirus pandemic dented its roaming revenues.

The German mobile operator, which is controlled by Spain’s Telefonica (TEF.MC) and runs the O2 brand, said however that business momentum picked up towards the end of the quarter and it stood by its full-year guidance.

“Our performance was robust in the first half of the year and we are showing relative strength compared to our competitors and the industry,” CEO Markus Haas said in a statement.

Revenue nudged higher by 0.3% in the quarter as a decline in mobile service revenues was more than offset by double-digit growth in handset revenues. Core operating margins were squeezed by 1.8 percentage points to 30.9%.

Telefonica Deutschland held its forecast for flat to slightly positive revenue growth and broadly stable to slightly positive profits this year.

Reporting by Douglas Busvine; editing by Thomas Seythal

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