Deutsche Telekom AG ADROTCQX
Yesterday, 9:03 AM
- Rather than chase surging stocks at fancy valuations, the team at Barron's looked for laggards when making its picks, writes Andrew Bary.
- The names, nevertheless, aren't exactly unfamiliar ones: Alphabet (GOOG, GOOGL), Apple (NASDAQ:AAPL), Citigroup (NYSE:C), Delta Air Lines (NYSE:DAL), Deutsche Telekom (OTCQX:DTEGY), Merck (NYSE:MRK), Novartis (NYSE:NVS), Toll Brothers (NYSE:TOL), Unilever (NYSE:UL), Disney (NYSE:DIS).
- Eight of these ten are trailing the S&P 500 this year, including the three European stocks (Deutsche Telekom, Novartis, and Unilever), and all of the names except Google sell for less than 20x 2017 estimates.
- At just 10x earnings, Toll Brothers, Citi, and Delta are better ways to play an improving economy than Caterpillar at nearly 30x.
- As for the "pricey" Google, it's an example of the Buffett maxim that he'd rather buy a wonderful business at a fair price rather than a fair business at a wonderful price.
- Barron's top picks for 2016 as a group are trailing the S&P 500 by more than 600 basis points.
Wed, Nov. 30, 5:04 AM
- An attack that hit nearly 1M home internet routers of Deutsche Telekom (OTCQX:DTEGY) customers has been brought to a close after the firm instructed users to reboot their machines and download a software patch.
- The malware used in the disruption since Sunday was a variant of the Mirai code used in similar incidents, but the company still hasn't found the culprit behind the attack.
Tue, Nov. 29, 8:18 AM
- German Chancellor Angela Merkel has no information on the origin of the cyber attack on Deutsche Telekom (OTCQX:DTEGY), which hit its network on Sunday and Monday.
- The appropriate body will do all it can to find out where the attacks came from," she told reporters. "Such attacks are a part of every day life and people have to get used to them."
- A company executive said the outages were an attempt to hijack consumer router devices for a wider Internet attack.
Mon, Nov. 28, 10:57 AM
- According to the Reuters report, as many as 900K, or 4.5% of its 20M fixed-line customers, are having problems connecting to its network.
- The outages could be the work of hackers. "Based on the pattern of errors, it can not be ruled out that the router has been targeted externally," Deutsche Telekom (OTCQX:DTEGY -0.7%) said in a statement .
Fri, Nov. 18, 1:38 PM
- Telecom companies are Europe's "sick man," marking the worst performance among the continent's sectors, and there's little encouraging news ahead, says Leila Abboud.
- An index of telecoms has showed up dead last in 2016, with 20% declines (accounting for dividend effects).
- Despite serviceable results from the likes of Vodafone (NASDAQ:VOD), Telefonica (NYSE:TEF), Telecom Italia (NYSE:TI), Orange (NYSE:ORAN) and Deutsche Telekom (OTCQX:DTEGY), investors are unimpressed and have driven the sector's overall value near a two-year low.
- Blocked acquisitions play a role, as EC chief Margrethe Vestager began blocking national mobile mergers.
- Even if the companies come through on sustained growth of market share and revenues, there may not be much to be gained: Enterprise values are around 6.2-6.4 times forward EBITDA -- not far below carriers in the U.S., around 6.5 times (but with quicker growing earnings).
Wed, Nov. 16, 6:56 PM
- With consolidation fever sweeping the media and telecom industries, Deutsche Telekom (OTCQX:DTEGY -0.4%) is playing coy about selling its interest in T-Mobile U.S. (TMUS -1.4%) -- even if T-Mobile chief John Legere has enthusiastically talked up the idea of partnering up in quarterly calls.
- "We are not in the mood of selling the business. We are not in the mood of: 'Oh where is the partner we need?' " CEO Tim Hoettges told the Morgan Stanley conference in Barcelona.
- But he's keeping an eye on the Trump administration as it takes shape and looking for any regulatory changes. The company's last two attempts to sell T-Mobile got tied up by government watchdogs, and since then T-Mobile has pulled off a recovery: It's almost as big as DT's German business.
- "All of this is helping us to be open and try to improve our situation," he says. "I am not afraid about whether a (pure) mobile player can survive in this environment. If there are any options, we are going to consider."
Mon, Nov. 14, 6:30 PM
- Deutsche Telekom (OTCQX:DTEGY -1.8%) has dropped out of the bidding for European Web hosting firm Host Europe, up for sale by its private equity owner Cinven, Reuters reports.
- Host Europe is likely to see a value around €1.7B (about $1.8B), as one of Europe's biggest independent hosting firms. It was bought by Cinven three years ago for £438M (about $545M) but has since expanded with bolt-on acquisitions.
- Germany's United Internet (OTCPK:UDIRF), teamed with Warburg Pincus, is now seen as the most likely winner in the race to acquire Host Europe.
Thu, Nov. 10, 12:11 PM
- With telecom consolidation making up one of the post-election storylines in the U.S. -- in particular, whether a new administration changes the calculus for a merger at U.S. unit T-Mobile (NASDAQ:TMUS) -- Deutsche Telekom (OTCQX:DTEGY -2%) says it's too early to tell whether a Trump administration would be positive for M&A.
- "The market reacted heavily," said DT CEO Tim Hoettges after T-Mobile stock hit an all-time high (it's now backed off 2.8%).
- A deal to combine T-Mobile with Sprint (S -0.9%) was nixed by regulators two years ago.
- DT will keep an open mind, and believes a U.S. mobile merger would be "huge," but "It is just far too early to speculate what the new administration would look like," Hoettges says.
- Earlier, Deutsche Telekom met expectations with its Q3 results largely due to performance at T-Mobile.
Thu, Nov. 10, 10:57 AM
- Deutsche Telekom (OTCQX:DTEGY) is 2.8% lower in U.S. trading after Q3 results where it met expectations and reiterated full-year guidance.
- Revenue grew nearly 6% with the help of solid growth at T-Mobile (NASDAQ:TMUS), and net profit was up more than 30%. EBITDA of €5.54B rose 7.2% and slightly missed an expected €5.55B.
- Fiber-optic broadband lines rose by 526K in Germany. While the number of call minutes used by contract customers rose 4.6% Y/Y, the company points at data usage that was up 80% (to nearly 1 GB/month on average). Its LTE network now covers about 92% of the population there.
- Meanwhile, mobile contract customers in European national companies rose by 219,000, and there are more than 4M TV customers. LTE is available to 78% of the population.
- Revenue breakout: Germany, €5.55B (down 0.8%); United States, €8.28B (up 17.3%); Europe, €3.22B (down 1.2%).
- Free cash flow rose 45.6% to €1.9B.
- Press Release
Fri, Nov. 4, 12:51 PM
- More Brexit fallout: Deutsche Telekom (OTCQX:DTEGY -0.7%) is thinking of selling its 12% stake of British incumbent telecom BT Group (NYSE:BT), Reuters reports, depending largely on what kind of deal the UK strikes to get out of the European Union.
- BT is off 1.8% in U.S. trading; it closed down 2.6% in London.
- That stake is worth about £4.4B ($5.5B), and Deutsche Telekom may see that money as better deployed elsewhere with a falling pound and projections for shrinking growth.
- The company (BT's biggest shareholder after the EE acquisition) can't sell the stake through normal means due to a lock-up lasting until August 2017; it can agree to an off-market deal with investors.
- DT is also rumored to be selling its British IT and consulting business, run through its T-Systems unit; it once tried to merge that business with BT's Global Services.
Fri, Nov. 4, 10:18 AM
- Vodafone (VOD -0.3%) has sold its fixed-line operations in the Netherlands to T-Mobile Nederland (OTCQX:DTEGY -0.9%).
- That's part of a concession it made to EU regulators in order to secure approval for its bigger merger -- of its operations in the country with Ziggo, the Dutch unit of Liberty Global (LBTYA +2.1%).
- Europe in early August signed off on the deal, which will create a stronger competitor to Dutch incumbent Royal KPN (OTCPK:KKPNY -1.3%).
Thu, Oct. 27, 7:20 PM
- Plaintiffs in a (very) long-running suit against Deutsche Telekom (OTCQX:DTEGY) are urging speed, as the case reopened today.
- "Plaintiffs are dying on us," lawyer Andreas Tilp says of the case, first filed in 2001. A Frankfurt regional court has been instructed by Germany's supreme court to determine damages.
- The plaintiffs in the case (the closest thing to a class action in Germany) are seeking €80M to make up for a share price drop when they bought into a third tranche of the IPO (Germany's largest at the time) to be offered in 2000.
- Most of those shares on offer at €66.50 each went to retail investors; about eight months later, the company wrote down its real estate and the price slid.
Wed, Oct. 26, 7:42 PM
- European telecoms have a stable outlook into the new year, Moody's says, thanks to flexibility in raising prices driven by customers' need for high-speed data -- and their willingness to spend.
- "Customers are willing to pay more for better value, and telcos" -- including some of the largest, like Telefonica (NYSE:TEF), Orange (NYSE:ORAN) Deutsche Telekom (OTCQX:DTEGY), Vodafone (NASDAQ:VOD), Telia (OTCPK:TLSNY), and Telecom Italia (NYSE:TI) -- "will continue to offer higher speeds, more capacity, content and additional services, such as roaming, greater network security and cloud storage capacity, to support price increases," the firm says.
- The demand should support industrywide revenue growth of 1-2% over the next 12-18 months, Moody's says, and margins will rise from around 35% now to 36% by 2017.
- Another tailwind is regulators focused less on reducing consumer prices and more on pushing investments in high-speed networking, the report says. But big cross-border M&A isn't likely to occur with fewer synergies to be grabbed as well as less financial flexibility, and governments protecting incumbent firms.
Wed, Sep. 14, 4:43 AM
- European officials will unveil new technology rules today aimed at reining in many of the world's largest tech firms.
- Under the proposals, which will take years to complete, European publishers may be given powers to charge internet companies whenever their content shows up in online results or other services.
- Chat apps will also be more heavily policed by extending rules which currently only cover telecoms providers.
- Related tickers: GOOG, GOOGL, FB, MSFT, ORAN, OTCQX:DTEGY, OTC:AXSPY
Fri, Aug. 26, 1:13 PM
- Inmarsat (OTCPK:IMASY) and Deutsche Telekom (OTCQX:DTEGY) are teaming to give significantly higher Internet speeds to European air travelers, one of three deals aiming to help Europe catch up to the U.S. on airborne wireless.
- The two will combine their satellites and ground towers to get connectivity to some Lufthansa flights, in what they say is a seamless service approach at lower cost than those relying on one or the other approach.
- ViaSat (NASDAQ:VSAT) is planning an entry it says will be even faster than the Inmarsat/Deutsche Telekom offering after it launches new satellites in 2017 and 2019, though Inmarsat thinks price is the key for consumers: “Wi-Fi on board will be free, and telcos and airlines will offer it as an add-on in five to 10 years’ time in order to gain passenger loyalty,” says CEO Rupert Pearce.
- Panasonic (OTCPK:PCRFY) also plans to increase coverage with the launch of its own device.
- Travelers can hit up the Internet on about 75% of flights in the U.S., but global penetration for onboard Wi-Fi is around 3%, says Iridium's Brian Pemberton.
Thu, Aug. 11, 11:47 AM
- IPass (NASDAQ:IPAS) has extended a deal with Deutsche Telekom (OTCQX:DTEGY) to offer inflight Wi-Fi to iPass customers on 12 international airlines.
- The airlines include Lufthansa, Aer Lingus, Etihad and American Airlines.
- The deal's now at three years and makes iPass available on 330 long-haul aircraft.
- Deutsche Telekom has more than 30,000 hotspots in Germany that are part of the iPass network.