Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on DEUTSCHE TELEKOM AG-REG. We currently have 24 research reports from 1 professional analysts.
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DEUTSCHE TELEKOM AG-REG
DEUTSCHE TELEKOM AG-REG
T-Mobile US shows solid performance in Q4 16
06 Jan 17
T-Mobile US reported strong customer results. The company added 8.2m (-1.1%) customers net in 2016 and in the fourth quarter alone 2.1m customers (+1.9% year-on-year). The total number of customers reached 71.5m. T-Mobile has added more than 8m customers per year in the last three years. In the whole year, the number of branded postpaid customers increased to 4.1m and exceeded the guidance which ranged between 3.7m and 3.9m. The branded postpaid churn rate declined from 1.46% to 1.28% in Q4 16.
Preparing for the next step
03 Jan 17
Deutsche Telekom and its subsidiary T-Mobile US have agreed to reduce interest expenses. Part of this agreement is a 3-year credit agreement with two tranches totalling US$2.5bn. This agreement will give T-Mobile US further financial leeway to invest and/or to reduce interest expenses. In September, Deutsche Telekom paid interest rates of 2.5% (7-year duration) and T-Mobile US 6% for US$1bn.
Stake in Scout24 reduced further
13 Dec 16
Deutsche Telekom and the private equity company Hellman & Friedman together with Scout24 management and the supervisory board have placed 7m shares in an accelerated bookbuilding over night. The CEO and CFO of the company will not place shares. Based on the latest price, the total volume reached €244m. The placement represents 6.5% of the total share capital. At present, Deutsche Telekom owns 10.94% and Hellman & Friedman 27.31% of the company. After the announcement, the closing price dropped by 3% and will be under further pressure because the leading banks involved can place even more shares according to the demand. In April, Hellman & Friedman and Deutsche Telekom had already placed 12m shares at the IPO price of €30. H&F received €280m and Deutsche Telekom €79m.
No impairment expected
08 Dec 16
The lower share price of BT might cause an impairment of around €1.6bn but we do not believe this will happen. In the financial report of Q3 16 ending in September, Deutsche Telekom’s management made it clear that there is at present no objective evidence for an impairment loss on the 12% stake in BT Group to be recognised in the profit and loss account. The fair value depends not only on the ongoing development of the share price of BT but also on the exchange rate. The financial stake is measured directly in equity and classified as an available-for-sale financial asset. In September, other financial assets increased by €3.4bn to €12.8bn compared to December 2015. The increase was mainly driven by the BT stake, worth €7.4bn, resulting from the sale of the 50% stake in the EE joint venture. In September, the carrying amount of the fair value reached €5.4bn and was directly booked against equity in accordance with IAS 39. According to our estimates the stake in BT is worth €5.03bn (-€2.37bn), of which €747m will be booked against equity and €1.6bn pending impairment due to the lower share price of BT.
Fragile network infrastructure!
29 Nov 16
According to Deutsche Telekom, it is still not quite clear whether the network failure was caused by a hacker attack or an in-house software problem. This event leaves some doubts about efficient system management. Around 0.9m routers (4.5% out of a total 19.87m fixed network customers in Germany) were involved. Deutsche Telekom indicated that, to date, no special pattern is recognisable. The speedport routers are bought from the Taiwanese-listed company Arcadyan (3596.TW) and Zyxel. The market leader in Germany is AVM (FritzBox). In 2015, the company generated total revenues of €400m with 570 employees. It is interesting to note that the routers of this company are still outperforming the market, also related to security issues.
Good idea but not the right company to start with!
24 Nov 16
The CtW Investment Group has started a request for an investigation. It believes the SEC should investigate T-Mobile US, based on the evidence of its failure to disclose adequately a change in accounting estimates. The main issue is revenue recognition from its sale of Equipment Installment Plans (EIP). According to CtW, T-Mobile reduced its allowance for credit losses as a percentage of EIP receivables. CtW has calculated the difference between allowances for credit losses based on a standard rate of 2.8% (CtW benchmark) per quarter starting in the first quarter of 2014 where this rate was used. In total, T-Mobile US reported US$121.51m higher income in the last two years due to lower allowances. In 2014, T-Mobile US reported net income of US$247m. Including the difference if the allowance had been 2.8%, net income would have declined by 11.3%, or US$27.86m. In 2015, net income reached US$733m and including US$93.64m of allowances, net income would have declined by 12.8%. The performance of the management is based on four metrics, of which adjusted EBITDA (20% weighting) and operating free cash flow (30% weighting) are based on net income. According to CtW Investment Group, without the US$93.6m generated by maintaining a lowered allowance for loan losses, the threshold for the maximum bonus would have been missed.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
APPLIED GRAPHENE MATERIALS PLC (AGM LN) | BELLWAY (BWY LN) | GOALS SOCCER CENTRES (GOAL LN) | GRAFENIA PLC (GRA LN) | GRAINGER PLC (GRI LN) | GREGGS (GRG LN) | HARGREAVES SERVICES (HSP LN) | IMMUNODIAGNOSTIC SYSTEMS HLDGS (IDH LN) | INSTEM PLC (INS LN) | KROMEK GROUP PLC (KMK LN) | NORTHGATE PLC (NTG LN) | QUANTUM PHARMA PLC (QP/ LN) | RHYTHMONE PLC (RTHM LN) | SCS GROUP PLC (SCS LN) | SHIELD THERAPEUTICS PLC (STX LN) | SQS SOFTWARE QUALITY SYSTEMS AG (SQS LN) | UTILITYWISE PLC (UTW LN) | VERTU MOTORS PLC (VTU LN) | VISLINK PLC (VLK LN) | ZYTRONIC (ZYT LN)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
23 Jan 17
Jackpotjoy — Prospectus now approved by the FCA. Admission to Official List expected 25 January. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
£6.5bn of market cap goes up in smoke
24 Jan 17
BT previously announced on 27 October 2016 that an initial internal investigation of accounting practices in its Italian business had identified certain historical accounting errors and areas of management judgement requiring reassessment. At that time, they announced the write-down of items on the balance sheet by £145m, being the then best estimate of the financial impact of these issues. Since then, BT has progressed with the investigation, which has included an independent review by KPMG of the accounting practices in the Italian operations. These investigations have revealed that the extent and complexity of inappropriate behaviour at the Italian business were far greater than previously identified and have revealed improper accounting practices and a complex set of improper sales, purchase, factoring and leasing transactions. These activities have resulted in the overstatement of earnings in the Italian business over a number of years. The investigation into the financial position of the Italian business is now substantially complete. The adjustments identified have increased from the £145m to a total of around £530m. In addition, BT would expect these matters to result in a reduction in the Q3 revenue and EBITDA of around £120m, and in a reduction in Q3 normalised free cash flow of around £100m. For 2016/17 as a whole, BT would now expect a decrease in revenue of around £200m, in EBITDA of around £175m, and of up to £500m of normalised free cash flow due to the EBITDA impact and the one-off unwinding of the effects of inappropriate working capital transactions. For 2017/18, BT would expect a similar annual impact to revenue and EBITDA as in 2016/17, with the EBITDA impact flowing through to normalised free cash flow.