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Research Tree provides access to ongoing research coverage, media content and regulatory news on DEUTSCHE TELEKOM AG-REG. We currently have 29 research reports from 1 professional analysts.
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DEUTSCHE TELEKOM AG-REG
DEUTSCHE TELEKOM AG-REG
T-Mobile – the clear winner of the 600MHz spectrum auction
18 Apr 17
After a long quiet period about the spectrum auction, T-Mobile US has reported the results. According to the company, the 600MHz spectrum auction was concluded successfully. The company won 45% of all low-band spectrum sold and paid in total around US$7.99bn. The frequency auction ended considerably lower, at around US$19.6bn, than expected (US$86bn). T-Mobile paid 41% of the total spectrum auction and received 45% of the total frequencies. The company has already made a deposit of US$2.2bn to the FCC and will pay US$5.79bn on 11 May 2017. The funding of the US$5.79bn will be via cash and by issuing US$4bn high-yield notes via Deutsche Telekom. The first senior notes of US$2.0bn with a coupon of 5.3% will mature in 2021; the second senior notes worth US$1.3bn and US$650m with a coupon of 6% each will mature in 2024. The financing of the spectrum auction was already arranged in 2016.
Solid operating performance at the EBITDA level
02 Mar 17
Deutsche Telekom has reported final 2016 results. Revenues increased 5.6% to €73.1bn. EBITDA grew 9% to €20.04bn and the EBITDA margin declined from 10.2% to 9.1%. EBIT declined 5.2% to €6.66bn compared to €7.03bn in 2015. According to the company, EBIT increased 30.4% to €9.16bn. We have adjusted EBIT by around €2.5bn for the net gain from the sale of the 50% stake in EE. The impairment loss of €2.2bn due to the BT share price decline is part of the financial results. Therefore, other operating income was reduced to €1.6bn instead of €4.18bn as reported and financial results by €2.2bn of expenses. The business was sold and therefore the results should have been reported under discontinued operations.
Strong performance in the US market
15 Feb 17
T-Mobile US reported Q4 16 results. Total revenues increase 23% to US$10.2bn and net income jumped 31% to US$390m. Operating income increased 12.4% to US$942m and the EBIT margin declined from 10.2% to 9.3%. Total net additions reached 2.1m customers, an increase of 1.9% compared to Q4 15. In the whole financial year, the company added 8.2m customers, the third year in a row above 8m. Net income doubled to US$1.7bn. In the current financial year, management is expecting net additions for branded postpaid customers to range between 2.4m and 3.4m. Adjusted EBITDA should range between US$10.4bn and US$10.8bn. In 2016, adjusted EBITDA reached US$10.4bn.
US-spectrum auction ended considerably lower
14 Feb 17
T-Mobile will report Q4 16 results today. Management might provide some information about the latest US-frequency auction which ended on 10 February. The auction was supposed to generate around US$86bn. In the end, the auction of 84MHz reached a total amount of US$19.6bn. The disappointing results for broadcasters were to a large extent attributable to overpriced previous auctions. The lower than expected price is good news for the telecom companies. There is an assignment phase which gives buyers the opportunity to bid for specific frequencies instead of generic blocks. This bidding will end in March.
Better late than never!
07 Feb 17
According to rumours in the market, Deutsche Telekom is planning to sell its business in Romania. In the first nine months, revenues in Romania declined 0.4% to €718m and EBITDA dropped 15.1% to €129m. The EBITDA margin declined from 21.1% to 18% which is the lowest within the group. The number of fixed network customers declined by 5.6% to 1.99m and mobile subscribers 0.6% to 5.87m. ARPU reached €5 which is also the lowest within the group. Poland and the Czech Republic also reported single-digit ARPU (Poland €7 and Czech Republic €9) but provided higher EBITDA margins. The EBITDA margin in Poland reached 31.5% and in the Czech Republic 43.1%.
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.
20 Apr 17
TEP’s trading update for the year to March 2017 highlights modest growth as expected, with a total dividend of 48p (25p final dividend) in line (49pE). FY18 forecasts are trimmed 3% at adjusted PBT level, to remain in line with FY17, with better quality customers taking all possible services – at a higher cost of acquisition but better prospective year 2 margins. With the positive outlook that a narrowing of the gap between standard variable energy tariffs and aggressively priced introductory deals has led to an encouraging upward trend in Q4 to March, prospects for restored growth in revenue (FY18) and profit (FY19) are strong. Improved incentivisation of the self employed salesforce, after a few years of lower growth, is complemented by the imminent addition of Home Insurance, adding sales momentum and increased customer interest as utility prices rise. With the double upside to the £70m tender offer in summer, and the June release of FY19 forecasts illustrating growth following greater detail available at prelims, the future is brighter for TEP. Target 1360p reiterated.
Northland Capital Morning Report
02 Dec 15
Divergence looks set to dominate the final month of 2015 and set the tone for 2016. The European Central Bank is widely expected to extend its QE economic stimulus programme and could reduce its overnight deposit rate further in an attempt to boost inflation, and more stimulus could come from Japan and China. Meanwhile the Federal Reserve is now expected to lift rates from historic lows. Higher US rates will impact not only the cost of capital in the US but also emerging markets where growth remains much weaker and leverage high. The move by the ECB is unlikely to have a major impact, however, as it is an extension rather than a new tool and the headlines continue to be dominated by politics rather than financial markets (Isis, the refugee/migrant crisis, tensions between Russia and Turkey etc). The respective moves are likely to further weaken the euro in 2016. The UK sits somewhere in the middle. November’s Autumn Statement saw the Chancellor drop his tax credit reduction plans and benefit from a surprise £27bn improvement in the Office for Budget Responsibility’s five year public finances forecast, based on higher tax revenue and lower debt interest. The general shift away from austerity, the protection of tax credits and increased minimum wage should ensure further economic growth.
Strong performance in the non-legacy business
20 Apr 17
TomTom reported Q1 revenues of €212.7m, down 2% yoy and 19.9% sequentially. Consumer decreased by 16% yoy to €98m, representing the main down-mover. The three other businesses combined grew by 14.1% to €114.7m, with in decreasing order Automotive (€41.1m, +38.4% yoy), Telematics (€40.6m, +9.4%) and Licensing (€33m, -2.1%). The gross margin came in at 62.2%, up 540bp yoy, while the EBIT margin lost 30bp to -2.3% (-€4.8m). EPS came in at €-0.02 and adjusted EPS at €0.03. The company re-iterated its guidance for FY17 with adjusted EPS of around €0.25 and revenues of between €1,025 and €1,050m.
31 Jan 17
Alumasc (ALU): Interims show strong sales growth but some margin pressure (BUY) | Joules Group (JOU): Marginal increase to FY17E forecast (BUY) | CityFibre* (CITY): Prospects shine (CORP) | Nasstar* (NASA): Trading update (CORP) | SCS Group (SCS): LFL order intake slowed during Q2 (BUY)