The accounting policies underlying the segment information remain the same as the accounting policies described in Note 3, Accounting Policies, in the Notes to the consolidated Financial Statements for the year ended December 31, 2012.
Operating income before depreciation and amortization (OIBDA) before group fees (“adjusted OIBDA”)
The group uses operating income before depreciation and amortization (OibDA) as a performance indi-cator. OibDA is calculated by excluding depreciation of property, plant, and equipment and amortization of intangible assets from operating income. This eliminates the impact of capital spending on property, plant, and equipment and intangible assets, over which management board has no direct control in the short term.
“Adjusted OibDA” is calculated in the same way as OibDA, but excludes group fees.
For further information, please refer to the Notes to the consolidated Financial Statements for the year ended December 31, 2012 (Note 4, Segment Reporting).
Group fees
Group fees represent fees paid to Telefónica, S.A. Group under a range of agreements covering management and consulting services, licenses, cost sharing, and other services.
Group‘s results for the first six months of the 2013 and 2012, as well as for the second quarter of 2013 and 2012:
Euros in thousands
April 1 to June 30, 2013 (unaudited)
April 1 to June 30, 2012 (unaudited)
Telecommuni-cations = Group
Telecommuni-cations
Global Services
(discontinued) Total
Reconci-liations Group
Revenues 1,215,535 1,295,356 151,425 1,446,781 (151,423) 1,295,356
Thereof: Revenues from
external customers 1,215,535 1,295,356 145,890 1,441,246 (145,890) 1,295,356
Thereof: Revenues from transactions with other
operating segments – – 5,534 5,534 (5,534) –
Adjusted OIBDA 309,846 334,027 138,755 472,782 (138,755) 334,027
Euros in thousands
January 1 to June 30, 2013 (unaudited)
January 1 to June 30, 2012 (unaudited)
Telecommuni-cations = Group
Telecommuni-cations
Global Services
(discontinued) Total
Reconci-liations Group
Revenues 2,445,419 2,553,798 264,873 2,818,671 (264,873) 2,553,798
Thereof: Revenues from
external customers 2,445,419 2,553,798 255,052 2,808,850 (255,052) 2,553,798
Thereof: Revenues from transactions with other
operating segments – – 9,821 9,821 (9,821) –
Adjusted OIBDA 603,475 628,677 240,604 869,281 (240,604) 628,677
Euros in thousands April 1 to June 30 (unaudited)
2013 2012
Adjusted OIBDA reportable segments 309,846 472,782
- Adjusted OIBDA from discontinued operations – 138,755
= Adjusted OIBDA of group
(continuing operations) 309,846 334,027
- Group fees (15,660) (17,038)
= OIBDA of group
(continuing operations) 294,186 316,989
- Depreciation and amortization (286,301) (279,445)
= Operating income
(continuing operations) 7,884 37,543
+/- Net financial income (expense) (5,222) 2,203
= Profit (loss) before tax from
continuing operations 2,663 39,746
Euros in thousands January 1 to June 30 (unaudited)
2013 2012
Adjusted OIBDA reportable segments 603,475 869,281
- Adjusted OIBDA from discontinued operations – 240,604
= Adjusted OIBDA of group
(continuing operations) 603,475 628,677
- Group fees (31,047) (31,528)
= OIBDA of group
(continuing operations) 572,428 597,149
- Depreciation and amortization (566,387) (547,748)
= Operating income
(continuing operations) 6,040 49,401
+/- Net financial income (expense) (16,232) 4,459
= Profit (loss) before tax from
continuing operations (10,191) 53,860
The interim consolidated Financial Statements for the period ended June 30, 2013 have been prepared in accordance with the same accounting policies as those used to prepare the consolidated Financial Statements for the year ended December 31, 2012, with the exception of the changes described below.
For further details, please refer to the Notes to the consolidated Financial Statements for the year ended December 31, 2012 (Note 3, Accounting Policies), which form the basis of these interim consoli-dated Financial Statements.
Telefónica Deutschland Group applies iAS 19R Employee benefits, iAS 1R Presentation of Financial Statements – Presentation of items of Other comprehensive income, and iFRS 13 Fair Value Measure-ment from January 1, 2013 onward. Those standards are required to be adopted for annual periods beginning on or after January 1, 2013. Other new standards and interpretations that were required to be applied in annual periods beginning on or after January 1, 2013 had no relevance for the Telefónica Deutschland Group.
The presentation of the consolidated Statement of comprehensive income has been adjusted in line with the requirements in iAS 1R (revised).
iAS 19R (revised) includes various new provisions relating to the accounting and reporting of employee benefits. Of particular relevance to Telefónica Deutschland Group was the replacement of the inter-est expense and the expected return on plan assets by a net interinter-est amount. This is calculated by multiplying the net pension obligation or net debt by the discount rate determined at the beginning of the period. The net pension obligation is derived by subtracting the fair value of plan assets from the present value of the defined benefit obligations.
The changes resulting from the application of the revised iAS 19R have not had any material impact on the interim consolidated Financial Statements. Accordingly, the comparative figures for 2012 have not been restated.
iFRS 13 is a new standard introduced to ensure that fair value is measured on a consistent basis across all standards without extending the scope of application in these standards. Additionally iFRS 13 also includes enhanced disclosure requirements. iFRS 13 needs to be applied prospectively for financial years beginning on or after January 1, 2013. initial application of iFRS 13 fair value measurement in the reporting period did not result in any material impact on the valuations in the interim consolidated Financial Statements.
Telefónica Deutschland Group early adopted iFRS 10 consolidated Financial Statements, iFRS 11 Joint Arrangements, and iFRS 12 Disclosure of interests in Other Entities on January 1, 2013. consequently, the group also adopted the associated changes to iAS 27 Separate Financial Statements and iAS 28 investments in Associates and Joint Ventures at the same time. The result of applying the classification requirements specified by iFRS 11 was that Telefónica Deutschland Group’s two existing joint ventures, TchibO Mobilfunk Gmbh & co. KG, hamburg, and TchibO Mobilfunk beteiligungs Gmbh, hamburg, needed to be classified as joint operations as defined by iFRS 11. Ultimately, the accounting outcome was the same as that from the proportionate consolidation method previously applied in accordance with iAS 31. in all other respects, the early application of these iFRSs had no material impact on the interim consolidated Financial Statements for the period ended June 30, 2013.
The consolidated Statement of Financial Position presented in these interim consolidated Financial Statements compares figures as of June 30, 2013 and December 31, 2012. The consolidated income Statement and the consolidated Statement of comprehensive income compare figures for the six-month periods ended June 30, 2013 and June 30, 2012 and the figures for the second quarter in finan-cial years 2013 and 2012. The consolidated Statement of cash Flows and the consolidated Statement of changes in Equity compare figures for the six-month periods ended June 30, 2013 and June 30, 2012.
To date, the trends in operating income have not shown any indication that the business is subject to significant seasonal fluctuations.