Telecoms

Telecoms equity research

Explore the most viewed and latest equity research and media content for companies within the Telecoms sector. Stocks in this sector provide telecoms services & equipment, and mobile services.

Telecoms equity research

Explore the most viewed and latest equity research and media content for companies within the Telecoms sector. Stocks in this sector provide telecoms services & equipment, and mobile services.

15 Jul 19

Acquisition of 24i Media

Amino has acquired 24i Media, industry-leading provider of TV and OTT apps, user experience solutions and services, headquartered in Amsterdam. The €21.4m acquisition (€16m cash, €3.3m in Amino stock and €2.1m deferred consideration conditional on management remaining with the business) will be funded from existing cash resources, retaining a continuing net cash position. 24i contributes to the rapid development of Amino’s strategy for driving high-margin software and recurring revenues, in addition to adding further key elements of provision of an end-to-end TV solution to clients – positioning the group earlier in the engagement during selection of the TV ecosystem. Growing at a strong 25% per annum, 24i lifts Amino forecast revenue by 6% with part-year contribution to November FY19, +22% in FY20 and +28% in FY21 – with EBITDA +1%, +24% and +39%. Combining EBITDA growth with a strong supporting dividend and retaining a healthy balance sheet after an intelligent and timely acquisition, we lift our target price to 215p.

Companies: Amino Technologies

15 Jul 19

Further push into online video – 24i deal

Amino has announced the acquisition of 24i Media, a provider of TV and OTT Apps, user experience and user interface (“UX/UI”) solutions and services. The group is paying total consideration of €21.4m in cash and shares for 87% of the issued share capital, although the subsequent injection of €5m and the AminoTV business into this subsidiary raises Amino’s stake to 92%. This price equates to an EV/Sales of c.4x on an historical basis. The 24i deal will provide Amino with a significantly enhanced geographic footprint and a material extension to AminoTV’s activities. The transaction will also allow Amino to accelerate its strategy of moving towards higher margin, software-led, recurring revenues in a rapidly-changing market.

Companies: Amino Technologies

18 Jul 19

LIBERUM: SigmaRoc* - Building a track record

SigmaRoc is building a strong track record of improving acquired businesses, raising EBITDA at the first three acquisitions by over 33%. The 2019 acquisitions of CCP and GD Harries bring strong local market presences, and offer scope for improvement; and there are still many other opportunities to pursue in the UK and Europe.

Companies: Sigmaroc

17 Jul 19

Small Cap Feast

Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

Companies: AOR MIRA CYAN ITX HOTC BRK RBD WINK MXCT AAOG

17 Jul 19

H1’19 trading: On track, retaining estimates

CyanConnode has released a H1’19 trading statement this morning, reaffirming its comfort with market expectations. While H1 revenues were expectedly down YoY, reflecting the isolated impact of the Indian elections on business activity in the group’s key market, the election of the incumbent candidate and burgeoning commercial pipeline are expected to support growth. We believe the shares’ underperformance YTD and current valuation of 1.2x FY19E EV/sales presents a compelling opportunity to gain exposure. We reiterate our Buy rating on the stock.

Companies: Cyanconnode

02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

04 Jul 19

Australian banks to digitize bank guarantees, US Gov reviewing license requests for Huawei, Broadcom to acquire Symantec

Australia's top three banks said on Thursday they have agreed to partner with IBM and shopping mall owner Scentre Group to test blockchain technology to digitize bank guarantees. The companies are exploring how to move away from paper-based bank guarantees to cut processing time and the risk of fraud, Australia and New Zealand Banking Group, Westpac Banking Corp and Commonwealth Bank of Australia said in a statement. The US government said on Wednesday it was reviewing licence requests from US companies seeking to export products to China's Huawei "Under the highest national security scrutiny" since the company is still blacklisted. In an email to Reuters, the Commerce Department said that as it reviewed applications, it was applying the "Presumption of denial" standard associated with Entity Listed companies, meaning applications are unlikely to be approved. Symantec shares surged more than 20% in extended trading on Tuesday after Bloomberg reported that Broadcom is in advanced talks to acquire the security software vendor. The deal is reported to be worth more than $16bn, implying an EV/Sales multiple of 3.40x (Bloomberg). Agreement on a deal was close but could be delayed until after the July 4 holiday, according to people briefed on the move.

Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH TECH AMO IQE

10 Jul 19

An impressive first half

Gamma’s H1 trading update reports another strong performance. In light of that, while management expects full year revenue to be within consensus range, it anticipates that EBITDA and EPS for FY 2019E will be slightly above the range of market expectations. As a result, we are assuming greater overhead efficiency than we had previously allowed for and we are increasing our FY 2019E EBITDA estimate by £1 million to £56.5 million - with the expectation of reassessing this further (positively) at the time of the interims in September. The update confirms that there has been continued growth in the UK across both direct and indirect channels. Cloud PBX sales have performed well again but there is a nod to the effects of an increasingly competitive market in the statement. Additionally, during the period, Gamma implemented the first phase of its digital transformation program in the Direct business. In all, this represents another strong period of growth for Gamma which, as CEO Andrew Taylor notes, balances near-term delivery with the execution of the Group’s longer term strategy.

Companies: Gamma Communications

11 Apr 19

Quarterly Research Outlook

We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.

Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PGM PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF

02 Jul 19

Huawei granted temporary reprieve, Self-driving cars have 2 big challenges, Applied Material bets on memory chips

Huawei was granted a temporary reprieve as part of a broader accord between the Trump administration and the Chinese central government at a much-anticipated meeting between the countries’ leaders. The autonomous vehicle industry has two big challenges it needs to overcome before self-driving cars become widespread - technology and business models that can make money, according to Michelle Avary, head of autonomous mobility at the World Economic Forum. US chip gear maker Applied Materials on Monday agreed to buy Japanese peer Kokusai Electric for $2.2 billion from KKR & Co Inc, as it bets on rising demand for memory chips used in data centres, 5G phones and AI-powered devices.

Companies: AMO IQE TRAK SEE CPX TCM TRCS QTX

14 May 19

Is the dividend cut a buy signal?

Vodafone has released its annual results. Although there was not much new on the operational side, the dividend was cut to €0.09, as was unfortunately expected (but it was probably the right thing to do). This corresponds to 6% of yesterday’s stock price (vs 10% previously). The major telcos, offering a 4.5-5.5% yield, lend it some upside if the market has confidence, like us, in the sustainability of the dividend. We maitain our Buy on the stock.

Companies: Vodafone Group

12 Jul 19

Small Cap Feast

ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Reinsurance giant Swiss Re has suspended plans for a £3.3bn London stock market flotation of its subsidiary ReAssure, blaming "heightened caution" among investors. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019.

Companies: AAOG BOOM RENX VELA SWG SAG TRMR TSG CYAN

03 Aug 17

Acquisition of education IT specialist Atomwide

For AdEPT the scale and quality of this acquisition is transformational. Atomwide is highly profitable and has the opportunity to extend its successful model outside the London area, particularly for schools and local authorities adopting the Multi Academy Trust (MAT) model. Incorporating the uplift to earnings and maintaining the same level of comparative differential with AdEPT’s AIM telecom peers leads us to raise our Target Price from 360p to 400p. Our rating remains Buy.

Companies: Adept Technology

28 Mar 19

FY18 ahead of management’s expectations

Pebble Beach has reported full year results ahead of management’s expectations, with revenues down 11% to £9.2m but adjusted EBITDA increasing materially to £2.5m (FY17: £0.5m). This outturn reflects a focus on high margin revenue and demonstrates management’s commitment to delivering improved profitability, despite challenging underlying market conditions. The margin gains delivered, improving cash flow and a strong order book give management confidence in delivering further financial improvement in FY 2019.

Companies: Pebble Beach Systems Group

17 Apr 19

Success of new Capex model

Finals from Mobile Tornado (MBT.L), a leading global provider of Push To Talk over Cellular (PoC) solutions, were in line with forecasts and February’s trading update with revenue growth (+17.5%) and good cost control resulting in a 49% reduction in adj. EBITDA loss to £0.9m. There was growth both year on year but also H2 over H1 with the success of the new Capex model that bundles hardware and perpetual licences. Recurring revenue was essentially flat. MBT has developed an enterprise-grade platform with a broad and deep set of instant communication applications with competitive advantages in availability, performance, capacity, functionality and price. Technical improvements have expanded the addressable market and management reports numerous engagements with high value Public Safety and Government Agency organisations for the first time as well as new industry verticals that are investigating PoC for worker efficiency applications. The timing associated with these larger deployments are difficult to predict and hence these sit outside our current forecasts. These point to a move into sustained profitability in FY19.

Companies: Mobile Tornado Group

09 Jul 19

Adept Technology Full Year Results

13 May 19

CyanConnode Holdings - Full year results 2018

28 Jun 19

Capital Network analyst on MTI Wireless Edge's water management acquisition

17 Dec 18

Manx Telecom CEO Gary Lamb and Matthew Turner CEO & Founder of Goshawk*

Premium

17 Jul 19

Downing: Income & Growth presentation at Mello May 2019

10 Dec 18

Executive interview – mVise

17 Jan 17

SigmaRoc - An overview

06 Dec 18

SigmaRoc (SRC) Presentation at MELLO London November 2018

14 Jun 16

Cyan Holdings - Acquisition and Fund Raising

12 Oct 18

MTI Wireless Edge Ltd to benefit from strong growth dynamics

17 Jul 19

CyanConnode - Trading update for H1 2019

19 Sep 18

CyanConnode - $11.6m order from India

09 Mar 17

AdEPT (ADT) update Sharesoc Richmond March 2017

11 Sep 18

CyanConnode - Interim Results 2018

24 May 19

MTI Wireless Edge 'an excellent growth company' with further re-rating potential

Latest Content

KAPE AMO IQE

Microsoft surges after strong cloud sales, CrowdStrike beats expectations, Apple to move AirPods production to Vietnam

Microsoft yesterday beat analysts' estimates for fourth-quarter revenue and profit, driven by continued sales increases from its cloud business and sending its shares to all-time highs. Shares of CrowdStrike climbed as much as 7% on Thursday after the cybersecurity company reported earnings for the first time since its IPO. For the quarter, CrowdStrike's loss per share was in line with analysts' estimates and revenue was slightly better than expected. Apple will begin soon trial production of AirPods in Vietnam to circumvent tariff fees imposed on Chinese-produced goods by Trump Administration. By expanding production outside of China, Apple can reduce the expenses caused by tariffs put in place by the Trump Administration.

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19 Jul 19
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Sigmaroc

LIBERUM: SigmaRoc* - Building a track record

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18 Jul 19
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Telia Company

Still waiting for a better H2

Q2 numbers were quite similar to Q1’s. They reflect an expected weak performance with a slow recovery curve in terms of EBITDA but the key point is that management has reiterated that H2 should be quite a bit stronger. We maintain our opinion at Add on the stock. We believe the group is restructuring well… getting ready for, in particular, a future significant market share on the TV side in Sweden, Norway and Finland (75% of its business).

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18 Jul 19
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Tele2

An extraordinary dividend that may well prove premonitory of the ordinary one

The Q2 numbers reflect that, with 80% of its activities in Sweden, Tele2 is becoming a mainstream telco. Does it deserve to be worth 11x its EBITDA? The key point remains probably the dividend. The group could offer SEK6-7 per share for 2019 (like the extraordinary dividend proposed for the sale in Kazakhstan and the Netherlands), corresponding to a 4.6-5.3% yield which offers a slight potential compared to the proxies of the sector. We maintain, however, our opinion at Reduce.

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18 Jul 19
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Cyanconnode

CyanConnode - Trading update for H1 2019

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17 Jul 19

IDEA AAOG TCM

Morning Note – 17 July 2019

Anglo African Oil & Gas (AAOG): Corp Funding completed, the Djeno beckons | Ideagen (IDEA): Corp The growth benefits of Organic + Acquired + Process | Telit (TCM): Corp H1 is in line with expectations

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17 Jul 19
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AOR MIRA CYAN ITX HOTC BRK RBD WINK MXCT AAOG

Small Cap Feast

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17 Jul 19
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Cyanconnode

H1’19 trading: On track, retaining estimates

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17 Jul 19
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Telekom Austria

An interesting slow growth story but the dividend remains relatively low

Q2 revenues were up by 2.6% yoy, while EBITDA (excluding restructuring charges in Austria) grew by 2.7% (adjusted for IFRS16) : it is slightly better than in Q1 and slightly above the outlook given by management for the whole year. We maintain our opinion at Add on the stock.

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