O2 Telefónica revenue falls 2.9% in third quarter as Ebitda drops 9.9%

Revenue falls less steeply than in the second quarter

O2 Telefónica's revenue dropped 2.9% in the third quarter to about 1.9 billion euros, the German unit of Spain's Telefónica reported. The decline was far milder than the 11.1% fall recorded in the second quarter. The company still sees no end to the downward trend, because its business has become less profitable.

Q2 2026-11.1%

Q3 2026-2.9%

Q2 2026

-11.1 %

Q3 2026

-2.9 %

Data from the article text

Operating earnings fall faster

Ebitda, the operating result before interest, taxes and depreciation, fell 9.9% to about 0.6 billion euros, after a 7.2% drop in the previous quarter. The company attributed the weaker result mainly to higher marketing spending and to one-off effects in the year-earlier quarter. Back then, savings had strengthened operating earnings, and those savings no longer exist.

Q2 2026-7.2%

Q3 2026-9.9%

Q2 2026

-7.2 %

Q3 2026

-9.9 %

Data from the article text

Mobile customers grow on extra devices

The mobile business is O2's most important division, and it recorded 49,000 additional contract customers, up from 30,000 in the second quarter. Rival Vodafone added 10,000 mobile contract customers, while Deutsche Telekom reported an increase of 322,000. The German mobile market is largely saturated, so the gains come mostly from extra devices such as a SIM card for a tablet or a smartwatch. A mobile contract customer is an activated SIM card for which a minimum amount is paid each month. The number of fixed-line connections also rose, although fixed line plays only a minor role for the company.

Q2 202630,000

Q3 202649,000

Q2 2026

30000 customers

Q3 2026

49000 customers

Data from the article text

Job cuts and the loss of 1&1

O2 is cutting jobs to reduce costs. This year, 1,100 positions are to be eliminated, about every sixth job, and the number of shops is to fall by 60, with about 250 shops mentioned as the latest figure. The company said the restructuring programme is well advanced. Further job cuts in customer service and sales are planned for next year. A key reason for the difficult situation is the loss last year of the large customer 1&1, which has switched to Vodafone and left important rental income missing. The telecom sector is also in transition, with firms relying more on artificial intelligence and cutting jobs, and Vodafone has likewise tightened its budget.

Management outlook

CFO Markus Rolle said the company is making Telefónica Deutschland more efficient and more capable, and that first successes of the transformation are becoming visible.

“We are making Telefónica Deutschland more efficient and more capable.”

Rolle also cautioned that the goal has not yet been reached.

“But we have not yet reached our goal.”

The company wants to return to profitable growth during 2027, backed by strict cost management and a stable financial position. New partnerships should feed into the 2027 figures. The new mobile provider Simsalasim and the financial services firm Revolut now run on O2's network and pay rental income, and the company expects revenue to develop positively over the course of 2027.