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Matthew Key, Chairman & Chief Executive of Telefónica Europe, commented:
“Telefónica Europe has met its 2008 financial targets at the top end of our yearly guidance in spite of highly competitive markets and in extremely difficult economic conditions. Delivery of six per cent year-on-year revenue growth and five per cent growth in OIBDA in the current market conditions demonstrates an extremely strong performance. This is further evidence of the resilience of the telecoms sector, although there is no room for complacency as our industry is by no means immune. It is critical that we continue to deliver propositions and services that add real value to our 46 million customers across Europe in these market conditions.
The UK business turned in yet another outstanding performance with double digit year-on-year growth and net mobile additions in the year up 45.3% reaching 1,087,866. In Q4 we added 499,000 fixed and mobile customers and ended 2008 with a total customer base approaching 22 million (including Tesco Mobile), representing growth of 7.5% year-on-year.
This great performance in the UK was fuelled by four key areas:
Our businesses in Germany, Ireland and Czech Republic also reported robust year-end results. Telefónica O2 Germany, in particular, has turned its fortunes around and, in 2009, will build on a fourth quarter that saw it return to service revenue growth and deliver OIBDA margins that are on a par with the UK. This was a fitting end to a year in which we focused on putting in place the foundations of the business to achieve a balanced approach between growth and profitability in the German telecommunications market. Telefónica O2 Ireland weathered a steadily worsening economic environment and strong competition to record significant improvements in year-on-year trends. We recorded net additions of 14,589 in the fourth quarter to total 81,561 net additions in the year. The total customer base stood at 1.7 million at the end of December, 5.0% higher than a year ago. Telefónica O2 Czech Republic hit its annual guidance and achieved a positive turnaround in its fixed-line business.
While our results appear to be bucking economic trends, we remain concerned about the current trading environment which has resulted in an overall smaller market. In times like these, execution becomes even more critical in offering customers services and propositions that they value. I believe the telecoms sector can help fuel economic recovery, provided the right regulatory framework is given. We call upon politicians, regulators and the industry to work together to ensure the regulatory clarity that will favour investments in R&D and new infrastructure.”
David Nicholas
Director of Communications
Telefónica Europe plc
david.nicholas@o2.com
t: +44 (0) 771 575 9176
Simon Lloyd
Head of Media Relations
Telefónica Europe plc
simon.lloyd@o2.com
t: +44 (0)1753 628335
Telefónica Europe press office: 01753 628402
