Free at last! Flogging off O2 fattens Telefonica’s financials

Spanish telco Telefonica bounced back to growth in its first-quarter results — thanks in part to the sale of its UK outfit O2 — increasing sales by 12.6 per cent to €11.5bn (£8.3bn) compared with the same period last year. Net earnings in the three months to March reached €1.8bn (£1.3bn), up from €688m (£498m) in 2014. César …

[JamesPond]

Consolidation?

How is BT purchasing EE consolidation of the mobile operator market? BT has been out of the mobile market since 2005 after selling BT Cellnet / O2 to Telefonica, so this is just another owner of the Orange/EE brand and doesn't reduce the number of competitors in the market.

[Mage]

Re: Consolidation?

O2 and Three,

In UK and Ireland.

It's a shame though that it was O2 flogged off and not Three.

[Vince]

Re: Consolidation?

It's good news for O2 customers if they merge - they might finally see that 3G and 4G thing which o2 seem pretty reluctant to offer.

It's not good news for Three customers mind you if it means they're given o2 service...

[jonathanb]

Re: Consolidation?

O2's customer service department is much better than any of the other networks, so as an O2 customer, I don't want 3's customer service.

[Anonymous Coward]

Re: Consolidation?

"How is BT purchasing EE consolidation of the mobile operator market?"

The word "sector" appears to apply, logically enough, to the broader UK telecoms sector, reflecting the fact that both fixed and wireless lines have only two types of traffic, voice and data, and the number of people in mobile-connection only households is slowly rising.

So if you take a step back, and ask what your choices are for voice and data connections, that choice just got smaller.

[Mark Adams]

I'm confused - if the deal still needs to be approved, which won't happen until September, then how can it have had any impact on Telefonica's earnings already?

[Anonymous Coward]

"then how can it have had any impact on Telefonica's earnings already?"

I haven't bothered to check, but usually businesses making a divestment report the numbers for a business they plan to sell as "discontinued operations" until the deal closes. When discussing performance, and quoting their financials (and indeed awarding themselves bonuses), all the commentary and metrics will focus on continuing operations.

[jonathanb]

And also if they sell it part-way through the year, the numbers for the division up until the date of sale are discontinued operations.

[Drefsab_UK]

Having been been an o2 customer and now a three customer I do have my reservations about this. For me o2 just dont offer any products that come close to meeting my data needs that can compete with my current three sim only monthly contract.

I don't dispute o2's customer service is good, but in the last 3 years the once or twice I've had to call three's customer services they have resolved my issue nicely.

As I use my package more than I use customer service I let that be the deciding factor.

If they can take the actual best of both networks with a merge then it could be really good. But then only if they manage to pull it off. As long as I can keep my monthly sim only contract with my unlimited 4g data usage then I will happy :)