MADRID (dpa-AFX) - Telefonica Deutschland Holding AG (TELDF.OB, TFTHF.OB) reported that its fourth-quarter OIBDA, excluding exceptional and special effects, increased by 5.3% year-on-year to 501 million euros, driven by additional integration savings of about 25 million euros.
Net additions in mobile postpaid came in at 336 thousand, with a continued strong contribution from partner brands. Contract churn was slightly higher at 1.6% year-on-year (vs. 1.5% in the third quarter) as a result of seasonality and the customer migration.
Mobile prepaid was affected by disconnections relating to seasonal effects and as such registered net disconnection of 89 thousand in the final quarter of 2016.
Revenues for the quarter came to 1.936 billion euros, down 6.0% from the prior year, with the handset business showing a continued decline of 17.6% driven by slower handset replacement cycles and a relatively mild Christmas season compared to previous years.
Telefonica Deutschland achieved significant commercial and operational success in 2016 and will continue to build on these achievements in 2017.
The company expects flat to mid single-digit year-on-year percentage growth in OIBDA (post Group-Fees, pre exceptionals.
In terms of Capex development Telef?nica Deutschland is focusing on the network consolidation and the roll-out of LTE in 2017, resulting in an expected capital expenditure of around EUR 1 billion.
The company reiterated our dividend outlook, with a proposal of EUR 0.25/share for the financial year 2016 and projected dividend growth over 3 years (2016-18).
It is are also upgrading our total synergy target from approx. EUR 800 million to approx. EUR 900 million operating cash flow (Opex-Capex) synergies in 2019.
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