www.WirelessFederation.com/news: OPERATIONAL HIGHLIGHTS:

• Telefónica Europe delivers strong performance on back of propositions which have led to more customers choosing and staying with O2
• Powerful cash generation in the first half of 2009 – up 16.8% year-on-year to €1.130 billion
• First half revenues increased to €6.571 billion (2.2% growth in constant currency), with OIBDA up to €1.879 billion (6.2% organic growth)
• Total customer base grew 8.3% year-on-year to 47.6 million
• Mobile customers increased to 42.6 million, with 85% of net additions in the contract segment
• Rebalancing of European portfolio bears fruit as Telefónica O2 Germany maintains growth trend

Telefónica O2 UK clearly outperforms market with lowest-ever churn and leading customer satisfaction scores

Matthew Key, Chairman & Chief Executive of Telefónica Europe, commented:
“Telefónica Europe has maintained its market momentum and delivered a strong financial performance in the first six months of the year against a challenging economic backdrop.

“There is clear evidence that the rebalancing of our European business portfolio is continuing to bear fruit, especially with the performance of Telefónica O2 Germany, which has been the main contributor to our OIBDA growth in the year to date.  Group revenues continued to grow in the last quarter, with a 1.8 per cent increase, excluding the effect of mobile termination rate cuts. Furthermore, we have continued to invest in the business and, at the same time, delivered a significant increase in operating cashflow. (more…)