Telefónica sinks more than 7% in the stock market after Vodafone ‘steals’ its main client in Germany

by archynewsycom
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The actions of Telefónica collapse more than 7% on the stock market, after Vodafone has announced an agreement with the German operator 1&1 Cellular to provide you with mobile services for the next 18 years. 1&1, which could be considered the MásMóvil German for looking for a similarity in Spain, is the main wholesale client of the Spanish company in the country, so the agreement will mean a high loss of income when it comes into force.

The market is thus harshly penalizing Telefónica, but even more to its German subsidiary which, after noon, fell by around 14%, on the verge of losing two euros per share. For its part, the market rewards Vodafone for this achievement for one of the subsidiaries that had weighed down the group throughout the year on the stock market and its titles rebounded by 2.52%. Although the entity really blessed by the market is 1&1, which shoots up 11%.

The agreement of Vodafone with 1&1 it will serve the German company to provide 5G services throughout the territory in which it does not have its own coverage through the Vodafone network, which will be its exclusive provider, which excludes the Spanish company from the equation.

The migration will begin to take place gradually from the second half of 2024 and the agreement will be linked to inflation. Vodafone expects revenue to start showing from its 2026 fiscal year, which would begin in April 2025.

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