Telefonica Germany: Stability anchor in the crisis

In the first quarter, sales at Telefonica Germany rose by 3.8 percent to 1.846 billion euros. The loss is reduced from EUR 107 million to EUR 44 million. This results in a loss of EUR 0.01 per share (old: EUR -0.04).

Telefonica Germany continues to expect a slight increase in sales for the year as a whole. The investment rate should be between 17 percent and 18 percent.

Nord LB analysts renew their buy recommendation for Telefonica Deutschland shares. The target price increases from EUR 2.90 to EUR 3.20.

Many telecommunications companies are anchoring stability in the crisis these days. This also includes Telefonica Germany. Consumers need a well-functioning telecommunications infrastructure not only because of their home office. The dynamics of digitization should be conducive to growth.

For 2020 the analysts expect a loss per share of 0.05 euros, in 2021 earnings per share of 0.03 euros. The dividend should be 0.17 euros in both years. This results in a dividend yield of 6.3 percent.

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