Investments planned: Telefonica Deutschland shares close a little lower: Invest radio mast proceeds and more dividends | message


For this, the board wanted to spend a “considerable part” of the achieved sum of 1.5 billion euros, announced Telefonica Deutschland on Tuesday on the occasion of a strategy update in Munich. In addition, the dividend for the past year should increase by one cent to 18 cents per share. This is also the dividend floor for the years 2021 to 2023. © The  board of directors wants to make a corresponding proposal at the general meeting in May.

According to the analyst Mathieu Robilliard of the British Barclays bank, this is likely to piss off at least some of the shareholders, as some had hoped for a higher payout as a result of the radio tower deal. ©

 The  shares fell in XETRA trading by 1.94 percent to 2.27 euros by the close of trading.

Jefferies analyst Ulrich Rathe was surprised that the telecommunications group did not distribute the proceeds from the radio mast deal with a special dividend, but wants to invest in infrastructure and business. He also complained that Telefonica management still owed investors an explanation of how much the operating margin (Oibda) should grow exactly. ©

 The re is also no news about the price negotiations with the provider Drillisch, who wants to use the Telefonica network.


 The  further expansion of our strong O2 network and the further improvement of our offers for private and above all business customers, especially through bundled mobile and fixed network services, are the key to profitable growth,” said CEO Markus Haas. Telefonica Deutschland had outsourced around 10,000 masts to another subsidiary of its Spanish parent company in the summer of 2020.

For example, the group plans to put 100 million euros into the new fiber optic company “Our Green Glass Fiber”. This is a joint project between Allianz and the Telefonica parent company with a volume of more than five billion euros. Telefonica has a 10 percent stake in the company. ©

 The  money will also be used to repay a borrower’s note worth 500 million euros that will mature this year.

Meanwhile, the group is sticking to its medium-term targets up to 2022. Telefonica presented this at the end of 2019. ©

 The  Executive Board is aiming for cumulative sales growth of at least five percent between 2020 and 2022. At the same time, profitability should be increased sustainably. This means that more than the operating result (Oibda) should depend on sales.

In the meantime, Telefonica is expanding its cooperation. Together with its competitors Deutsche Telekom and Vodafone, the group wants to close so-called “gray spots” in the 4G network in Germany. ©

 The se are areas in which not all three operators can supply the residents with the fourth generation of the cellular standard from their own network.


 The se are located in thinly populated areas of Germany – there an economical operation of the antennas is difficult. By sharing the locations, the costs for the network operators are lower than if they went it alone. “I assume that we will have to look for gray spots in the future,” said Telefonica Germany boss Haas in a conference call.

In October, Telefonica announced that it would also offer Internet via fiber optics in future in cooperation with Deutsche Telekom. Similar to its competitors, Telefonica wants to lure its customers with discounts in the future if they opt for two or more products from one provider, for example mobile communications and Internet at home. Telekom has been offering such offers through “MagentaEins” for years; at Vodafone the conditions are called “GigaKombi”.



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