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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 27 research reports from 1 professional analysts.
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DEUTSCHE TELEKOM AG-REG
DEUTSCHE TELEKOM AG-REG
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.
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.
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.
Visible benefits from restructuring
23 Feb 17
In our view, Monitise’s H1 17 results demonstrate the benefits of management’s ongoing transformation programme. EBITDA profitability was sustained, and accompanied by cash outflow more than halving vs H1 16A. With gross cash at £27.3m, the group’s financial position remains strong. Initial FINkit sales are under “active discussion” and ongoing regulatory initiatives (CMA, PSD2) give further grounds for optimism in the outlook.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
A solid Q4, but cautious guidance
23 Feb 17
Q4 revenues were up organically by 2.7% yoy (at constant forex), a quite good surprise as they were stable in both Q2 and Q3. The adjusted EBITDA which had increased by 3.1% during the first 9m was also up by a strong 9.4% in Q4. Note that, in this quarter, the currency impact was still strong in South America, except in…Brazil: South American revenues, which grew organically in current currencies by 10.9% yoy in Q4, were still down by 5.2% yoy in reported terms while Brazilian revenues which were up by a modest 1.1% (as in the previous quarters) were up by 18.1% in reported terms. Note exceptional restructuring cost provisions amounting to €1.29bn in Q4 (of which €856m in Spain). Telefonica gave a cautious guidance for 2017: - Revenue should be stable vs 2016 (despite however a negative 1.2ppt impact from regulation) but with an EBITDA margin expansion of 1ppt vs 2016; - Capex/sales should be at around 16% (vs 17% in 2016). This will enable Telefonica to have the most extensive ftth network in Spain (17m premises passed) and to exceed 17m premises with fibre in Brazil, or an LTE penetration >90% in Spain and UK, >80% in Germany and >50% in Latin America. The group has also confirmed the new dividend to strengthen its balance sheet and intensify organic deleverage, maintaining, however, an attractive level of shareholder remuneration. The dividend should be €0.4 in 2016 (still a yield above the 4%) vs €0.75 in 2015. Note, concerning the deleveraging, that after the closing of the year, on 20 February Telefónica reached an agreement for the sale of up to 40% of the total share capital of Telxius to Taurus Bidco for €1,275m (€12.75 per share). The closing is subject to obtaining the corresponding regulatory approvals. After the closing of the transaction, Telefónica will maintain control over Telxius.
4.6% yoy EBITDA growth in Q4!
23 Feb 17
Q4 revenues have grown organically by 1% yoy. This is quite a good performance, slightly better than the market’s expectations. Remember, revenues had increased by 0.3% during H1 and by 0.8% in Q3. As in Q3, growth was remarkable in Spain (+7.9%), led by mobile services and mobile equipment sales, while the growth in fixed broadband continued to be strong with the success of fibre (1.45m customers at end 2016). In France, revenues declined by only 0.8% yoy, the impact of roaming being completely offset by a clear improvement in the mobile trend. Q4 EBITDA rose by 4.6% yoy (corresponding to a margin of 31.3%), tied to revenue growth and a reduction in labour expenses (with the average number of full-time equivalent employees falling 2.8% in the quarter). This is a good performance as it was merely stable during H1. With no surprise the group has set an objective for 2017 of a higher EBITDA than in 2016 on a comparable basis (lifted by the strong commercial momentum supported by capex, and continuing efforts to transform the cost structure). With no surprise, the group will propose the payment of a dividend of €0.60 per share for 2016 but of €0.65 for…2017.
Slight upgrade in the synergy target for 2019
22 Feb 17
Q4 revenues showed a slight continued decline with a yoy decrease of 6% to €1,936m (vs a 5.7% yoy decline during the first 9m). Note that, as in the previous quarter, this is mainly a result of the decline in handset revenues. Handset revenues fell by 17.6% yoy, reflecting longer replacement cycles and handset saturation in the German market. The key point is that Mobile service revenues (which represent 75% of the global business) declined by only 2.1% yoy in Q4, as in previous quarters, and by only 0.9% excluding the effects of the mobile termination and roaming rate cuts. As in the previous quarter, the good news is the EBITDA growth of 5.3% yoy (+3.8% for the whole year), thanks to the successful capture of synergies (mainly related to employee restructuring). Management has given its outlook for 2017: absolutely no surprise with slightly negative to flat yoy mobile service revenues and a flat to mid single-digit percentage growth for EBITDA.