Telefónica Deutschland's Q3 Performance Analyzed by First Berlin Equity

First Berlin Equity Research GmbH recently updated their analysis on Telefónica Deutschland Holding AG, affirming a "Buy" recommendation with a target price of €3. The report follows Telefónica SA's disclosure of its third-quarter 2024 results, highlighting a consistent operational performance in its German division.

The German operations reported a €2.10 billion revenue, showing a slight year-on-year decline of 1.6%. This revenue aligns closely with First Berlin's forecast of €2.13 billion. However, revenue was impacted by reduced mobile termination rates introduced in January 2024 and amendments to the 1&1 contract.

Despite these challenges, the O2 brand remains influential in Germany's telecom market. The AEBITDA margin remained robust at 33%, showcasing the company's efficient operations. Analyst Kevin Sheil emphasizes the stable market positioning of Telefónica Deutschland Holding AG.