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Oct. 28, 2020, 2:40 a.m. EDT

Telefonica Deutschland swings to net profit

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By Mauro Orru

Telefonica Deutschland Holding AG said Wednesday that it swung to net profit for the third quarter, its first since the second quarter of 2016 as the sale of the first tranche of rooftop sites to Telxius brought in 407 million euros ($480.1 million).

The German telecommunications company posted net profit of 390 million euros ($460.1 million) compared with a net loss of EUR24 million in the third quarter of 2019.

Operating income before depreciation and amortization, or Oibda, rose to EUR976 million from EUR588 million, with the Oibda margin climbing to 52.1% from 31.6%.

Oibda adjusted for exceptional effects rose to EUR595 million from EUR590 million.

Revenue increased 0.4% to EUR1.87 billion, as rising sales of fixed-network products compensated for negative effects from the coronavirus pandemic of EUR30 million, mostly from restrictions on international roaming.

Telefonica Deutschland backed its 2020 outlook and continues to expect 2020 revenue to be between flat to slightly positive year-on-year, with Oibda adjusted for exceptional effects broadly stable to slightly positive.

"Our core business is proving to be very resilient in the midst of an overall economic downturn. We are confident that we will achieve our targets for the full year, which we had already set ourselves before the outbreak of the pandemic," said Telefonica Deutschland Chief Executive Markus Haas.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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