Telefonica Deutschland continues to evaluate options to raise financing from the open market following the cancellation of an intended bond issue during the first half of April.
Telefonica Deutschland CFO Rachel Empey told journalists that the issuance…
Telefonica Deutschland continues to evaluate options to raise financing from the open market following the cancellation of an intended bond issue during the first half of April.
Telefonica Deutschland CFO Rachel Empey told journalists that the issuance of a bond remains one of its options.
“We’ve been very clear since we became an independent company that, as a leadership team, we intend to look at the available sources of funding in the open marketplace to enable us to have the most efficient and effective capital structure for this business going forward,” Empey said.
The company will continue to look at the available options “over the coming weeks and months”, she added. “From my perspective a potential bond issuance is an option, but of course we are evaluating other options.”
Speaking on the same occasion, Germany CEO Robert Schuster downplayed an earlier media report suggesting the company might spin off its fixed line network. “The fixed net business is a very important part of our strategy today and in the future,” Schuster said.
Yesterday Telefonica Deutschland announced an agreement with incumbent Deutsche Telekom to expand their fixed-line co-operation. The deal, part of the company’s convergence strategy, will enable O2 to use DT’s fixed line infrastructure to deliver broadband services to customers.
Last week a news service had claimed that Telefonica considers the German fixed line assets, valued at about €2bn, a disposal candidate.
Schuster also confirmed that no talks with KPN are under way about potential network sharing in the country, although reiterating that this could be attractive. The CEO said: “I am not in any network sharing discussions with KPN as I sit here today, but clearly I am always open to discussions, not only with KPN but with all the competitors in the German market.”
According to its Q1 results published today, Telefonica Deutschland generated revenues of €1.23bn during the first quarter, 2.3% down year-on-year. OIBDA stood at €278m, equalling a decline of 0.7%, while the OIBDA margin increased by 0.4% year-on-year to 22.6%. The telco said it was operating in “a more active and competitive environment”.
