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The relatively strong start to the year recorded in Q1 continued in Q2.
The group has slightly increased its 2022 EBITDA outlook and raised its 5G coverage ambition by the year end within an unchanged capex envelope.
We remain at Add on the stock which, like most telcos, was sold off last week in what might be termed a rotation into quality growth stocks at the expense of telcos (telcos having been up ytd 2022).
Companies: Telefonica Deutschland Holding AG
A quite strong start to the year with revenues and EBITDA up by 5.2% and 7.2% yoy and lfl respectively.
The group is accelerating its 5G rollout to a full coverage by 2025. It has already achieved coverage of 40% at the end of April. As icing on the cake, investments which had shifted from 2020 to 2021 due to the COVID-19 should decline a little in 2022 and allow the dividend to increase steadily in the coming years.
We maintain our opinion at Add.
A solid Q3 release with revenues and EBITDA up by 5.1% and 3% yoy and lfl respectively. EBITDA is now expected to grow by a low to mid-single digit (vs a slightly positive growth previously).
Like for many telcos, due to the pressure on rates and therefore on the dividend yield, the stock is currently at the low end of its trading range (€2.2-2.5). It’s probably a good time to buy to aim for a return to the top of the range.
A solid Q2 release with revenues and EBITDA up by c.3.5% yoy and lfl respectively (note travel restrictions are still limiting roaming activities).
The stock is still trading 5% below its pre-COVID-19 levels: this is undeserved and we maintain our Buy opinion. The dividend yield is 7.35% and remains very sure according to us.
In a hard lockdown quarter, Q1 revenues were flat yoy, while EBITDA was better than expected, up by 5.5% despite the roaming drag.
The stock is still trading 5% below its pre-COVID-19 levels: this is undeserved and we maintain our Buy opinion. The dividend yield is 7.35% and remains very sure according to us (and is calibrated according a capex/sales ratio peak at 17-18% in 2021-22).
The group published a solid quarter with, in particular, a return to a solid 3.2% growth for EBITDA despite still weak roaming.
The group announced an enhanced dividend of €0.18 (vs €0.17 expected) for 2020.
The stock is, however, still trading 15% below its pre-COVID-19 (and last summer) levels: this is undeserved and we maintain our Buy opinion, given its secure 7.7% dividend yield.
The stock was up by 1% at the opening (in a market worried about the return of lockdowns and down by 3% overall) following the Q3 release. This is deserved as the group published a solid quarter with, in particular, a return to growth for EBITDA despite still-weak roaming. The stock is, however, still trading 15% below its February (and May!) levels: this is undeserved and we maintain our Buy opinion.
The stock was down 5% at the opening following its Q2 release. This is not deserved as the group published an as expected quarter. The key point to keep in mind is that, since the announcement of the decline in its dividend last December (due to an upcoming two-year investment project), the dividend is perfectly in line with the group’s cash flows. Well, with a 7% dividend yield, we believe the stock is rather a good opportunity to take.
Q3 revenues were up by 2.7% yoy showing that, despite the decline on the fixed side, the group is clearly an interesting slight growth story in the telecom sector. Admittedly, EBITDA was up by only 0.9% yoy and lfl but the current four-year transformation programme of the group should bear fruit mainly from 2020.
We maintain our Buy on the stock, although we are aware that the group could partly cut its dividend for 2019 in the next release.
Q1 in line with expectations with revenues and EBITDA up, respectively, by 1.3% and 1% yoy.
But thanks to an agreement signed two days ago with Vodafone, Telefónica Deutschland will be able to supply up to 24m cable households in Germany with attractive O2 fixed network products at higher speeds than VDSL. This is clearly a new growth driver.
With a current dividend yield at 9.45%, we still believe the group is discounted compared to its peers.
Q2 and H1 revenues were perfectly stable yoy as expected excluding a regulatory drag of -0.5%. H1 EBITDA was up by 4% yoy and lfl (+6% in IFRS 15) thanks to an additional €30m of relevant synergies. EBITDA is indeed slightly above our expectations
Management has reiterated its full-year outlook for 2018: revenues should remain broadly stable yoy excluding a regulatory drag (for European roaming in H1) of €30-50m corresponding to only 0.5% of the global revenues of the group. EBITDA should also
With a dividend yield of 6.4% (at yesterday’s price), well above its peers (at 5.5% on average but at 4.5% for some secure regional players like Swisscom, Tele2 or Elisa), there is an interesting opportunity to invest in a stock which is probably a no-growth story for 2018 but which does not present any risk of not paying its dividend!
A rather correct but expected set of Q3 results for Telefonica Deutschland.
Q3 revenues still showed a slight continuing decline with a yoy decrease of 1.3% yoy but the trend is clearly improving (Q2 and Q1 revenues were respectively down by 3.4% and 4.7% yoy, while in 2016 they had decreased by 6% yoy for the whole year). Note Mobile service revenue fell by 3.6% yoy but, excluding the roaming regulation, it should have continued to improve to -0.1% yoy vs -0.4/0.6% in the two prior quarters.
A rather correct set of Q2 results for Telefonica Deutschland (after a slightly disappointing one in Q1).
Q2 revenues still showed a slight continued decline with a yoy decrease of 3.4% yoy but the trend was better than in Q1 (-4.7% yoy) and in 2016 (-6% yoy for the whole year). Note Mobile service revenue fell by 3% yoy but excluding the roaming regulation, it should have continued to improve to -0.4% yoy vs -0.6% in the prior quarter.
As in the previous quarter, EBITDA has grown despite lowe
A rather disappointing set of Q1 results for Telefonica Deutschland.
Q1 revenues showed a slight continued decline with a yoy decrease of 4.7% to €1,771m. Even if the trend was slightly better than in 2016 (-6% yoy for the whole year), we were expecting, however, a better number (a 3% decline indeed). Note furthermore that, unlike the previous quarter, this was mainly a result of the decline in… service revenues. Handset revenues fell by 5.4% yoy, still reflecting, but to a much lesser degree t
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Reaching the Inflection Point
Companies: CyanConnode Holdings plc
CyanConnode is a market-leading provider of telecommunications technology in the smart meter industry and is currently geared towards the vast expansion programme of electricity meter set out by the Government of India. In the past year it has built on its prior success, growing revenue by c50% and reducing net losses by c60% bringing it closer to profitability. CyanConnode trades on an FY1 EV/Sales multiple of 2.7x, which is a discount to its peer group trading on 4.1x. This leads us to an impl
Companies: SRT Marine Systems plc
FY22 results confirm that the year to March was in line with expectations. Systems deployments were delayed by lockdowns so virtually all the sales were from the Transceivers business, itself struggling to meet growing demand while constrained by component shortages. Meanwhile, SRT continued to invest in its product portfolio and capability to deliver multiple large Systems projects around the world, resulting in a significant loss for the year. However, that investment has substantially improve
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Significant contract resumed and further cost cuts
CyanConnode released a solid trading update on 12 January which confirmed the Group was trading in line with market forecasts and demonstrated the renewed momentum the Group has seen in the past 12 months as COVID restrictions have eased and deliveries have accelerated. With a cash balance at end of December of £1 million, we believe cash will have been received from customers post period end. We understand debtors are in the region of £5.5m in India alone and with the Indian subsidiary now bein
A bland trading update with Q1 service revenues up by 2.5% yoy and lfl (vs+ 2.5% in Q4).
We maintain our opinion at Buy. The stock is currently around the 130p level. We are still waiting for a catalyst to boost the stock which remains discounted to its peers due to the scepticism and mistrust towards its CEO (under fire after missing opportunities in Italy, Spain and with Vantage).
Companies: Vodafone Group Plc
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