BERLIN -German telecommunications firm Telefonica Deutschland announced a deal with international virtual network operator Lebara as it raised its 2021 core profit target on Wednesday thanks to growth in new customer contracts for its core brand O2.
Lebara, which provides mobile SIM cards with low-cost international calls, will start using Telefonica Deutschland's network infrastructure next year, the German company said in a statement.
Telefonica Deutschland is Germany's No.3 mobile phone service provider with 45 million existing contracts, compared with Deutsche Telekom's 50 million and Vodafone's 60 million, according to data from regulator Bundesnetzagentur.
Telefonica Deutschland added another 415,000 contracts in the third quarter, boosting its full-year prospects, the company said.
Telefonica Deutschland, which is majority-owned by the Spanish Telefonica group, said 2021 adjusted operating profit (OIBDA) would rise in the low mid-single-digit percentage range, compared to its previous target for a figure slightly above previous year.
The company said its third-quarter revenues rose around 5% to 1.97 billion euros ($2.28 billion), above the 1.91 billion euros expected on average by analysts in a Refinitiv poll.
($1 = 0.8635 euros)