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What Dampened Telefónica’s Revenue Growth in Germany?

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Telefónica’s revenue in Germany in 4Q15

Earlier in the series, we looked at the performance of Telefónica (TEF) in one of its key markets, Spain (EWP), in 4Q15. Now, we’ll look at the performance of the telecom player in another key market, Germany (EWG). Note that Deutsche Telekom (DTEGY) and Vodafone (VOD) are also key telecom players in this geography.

Telefónica Deutschland’s revenue rose ~2% YoY (year-over-year) to reach ~2.1 billion euros in 4Q15. The fixed services component dampened the growth of Telefónica’s revenue in this geography during the quarter.

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Telefónica’s fixed services revenue in Germany in 4Q15

In fixed services, Telefónica’s revenue in Germany fell ~2.9% YoY to reach ~0.27 billion euros during 4Q15. The marginal growth in the company’s fixed broadband and new services component limited the overall fall in its fixed services revenue stream during the quarter.

The revenue of the company’s fixed broadband and new services component rose by ~0.5% to ~0.2 billion euros during 4Q15. Meanwhile, Telefónica Deutschland’s voice and access revenues fell ~8.3% YoY to reach ~0.07 billion euros during the quarter.

Shrinking fixed broadband accesses of Telefónica in Germany

As you can observe in the above chart, Telefónica’s fixed broadband accesses in Germany continued to fall in 4Q15. These broadband connections fell by ~2.1% YoY to ~2.1 million at the end of the quarter. On a net basis, broadband losses for Telefónica here were ~4,700 in 4Q15. According to the company, on a net basis, it added ~73,000 VDSL (very-high-bit-rate digital subscriber line) connections in this market during the quarter.

Meanwhile, the fixed telephony connections of Telefónica in Germany fell by ~1.9% YoY to ~2 million during the quarter.

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