By Cecilia Butini 
 

Telefonica Deutschland Holding AG on Tuesday refined its midterm guidance and proposed an increased dividend amid a strategy update.

The German telecommunications company said it expects cumulated revenue growth of a minimum of 5% over the three-year period from 2020 to 2022 amid its investment for growth program, which it launched a year ago. Operating income before depreciation and amortization, or Oibda, adjusted for exceptional effects and excluding the effect of the coronavirus pandemic is expected to benefit from these revenue streams, the company said.

Telefonica Deutschland intends to propose an increased dividend of 0.18 euros ($0.22) per share for the financial year 2020 at its annual general meeting in May.

It confirmed its outlook for the 2020 financial year. It has previously guided for 2020 revenue to be between flat to slightly positive year-on-year.

Additionally, the company said it entered into a memorandum of understanding with Deutsche Telekom AG and into a similar agreement with Vodafone Group PLC for bilateral network sharing in grey spots, or areas where only one operator offers LTE cellular coverage. The companies will target a combined minimum of 1,200 sites, Telefonica Deutschland said.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

January 19, 2021 02:57 ET (07:57 GMT)

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