On phone sales or the right side of historic customer loyalty?
German mobile operator Telefónica Deutschland (TD) has had a good quarter, with sales touching €2 billion for the O2 brand. In Wednesday TD confirmed its 2022 outlook for sales and operating income before depreciation and amortization (OIBDA and it reported a 5.2% jump in sales for the first quarter of 2021, riding on a wave of strong demand for expensive smartphones. The group reported sales of almost €1.95 billion ($2.1 billion) and said its adjusted OIBDA rose 7.2% to €602 million in the quarter. Investment bank UBS said it expects a solid outlook for the year given a growing subscriber base and an easing of travel restrictions.
Surprises
In November 2021 the Munich-based telco had upgraded its guidance on the back of its Q3 2021 earnings report and claimed to be experiencing “historic highs” in customer loyalty and a strong performance from its mobile unit. Operating under the O2 brand TD is full of surprises for Market Watchers. In Q4 2021 it posted a net loss of €2 million, in contrast to a profit of €1 million that the company reported for the fourth quarter of 2020.
The war in Ukraine has made no impact on its operational business, TD said.