­Telefónica has confirmed that it will float a portion of its German subsidiary, O2 onto the Frankfurt Stock Exchange during the fourth quarter of this year. The sale had been expected, although the company has still not been able to say what percentage of the German mobile network will be listed.

The company simply said that it will remain a majority shareholder.

"The rise of Telefónica Deutschland is based on the successful implementation of our data services strategy, our strong brand portfolio and a very high customer satisfaction. Moreover, we operate in Germany, which is one of the strongest economies in Europe and one of the largest telecommunications markets in Europe," says René Schuster, CEO of Telefónica Deutschland.

"We are convinced that an IPO will enable us to raise our profile further, and to continue the successful growth story of Telefónica Deutschland in Germany in the long term." he added.

In 2011, Telefónica Deutschland recorded revenues of €5 billion and an operating income before depreciation and amortization (OIBDA) of €1.1 billion, corresponding to year-on-year increases in revenue of 4 percent and 5 percent in OIBDA, excluding restructuring costs in 2010. As of September 30, 2012, Telefónica Deutschland's net financial debt was approximately €1.1 billion. Over the medium term, Telefónica Deutschland targets a leverage ratio (Net debt/OIBDA) of below 1.0.

The cash dividend payable in 2013 is targeted to be around €500 million, and intends to increase the amount of dividends to be distributed in future years. 

"Our results in the first half of 2012 prove our healthy growth," says Rachel Empey, CFO of Telefónica Deutschland. "We intend to drive profitable growth and efficiency resulting in enhanced cash flow generation."