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Deutsche Telekom AG ADR (DTEGY)

  • Yesterday, 9:44 AM
    • Digital Turbine (NASDAQ:APPS) has opened up 6% as it announces it will launch its Ignite platform with Deutsche Telekom (OTCQX:DTEGY).
    • The solution is designed to get applications onto mobile devices faster, using zero-rated data (doesn't count against consumer caps) in more of a just-in-time way than with previous preloaded apps.
    • The company is promising dynamic app delivery optimized per mobile device "in the coming months."
    • Deutsche Telekom has more than 142M mobile customers; Digital Turbine's products are used by 31M customers/month.
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  • Yesterday, 9:19 AM
    • Speaking at Deutsche Telekom's (OTCQX:DTEGY) capital markets day, T-Mobile (NYSE:TMUS) chief John Legere reiterated comments he made last week about the prospects of a wireless partnership with satellite company Dish Network (NASDAQ:DISH): "Dish and we, that makes some sense."
    • "It makes sense from the standpoint of integrating that spectrum and capability and deploying it at our network," Legere says of Dish's spectrum hoard. (Of course, he's been critical of Dish's auction bidding when it suited him.)
    • Legere also says that facing rapid customer growth, T-Mobile has cut its margin target -- seeing margin on EBITDA of 32-34% in 2017, vs. its previous target of 34-36%.
    • For his part, Dish's Charlie Ergen has had sweet talk for T-Mobile as well.
    • Previously: T-Mobile's knockout Q4: Turning the profit corner; are they No. 3? (Feb. 19 2015)
  • Tue, Feb. 24, 8:02 PM
    • U.K. mobile firms are likely looking at a license fee increase as regulator Ofcom follows its government mandate to ensure spectrum fees reflect market value.
    • EE (ORAN, OTCQX:DTEGY) -- on its way to becoming part of BT Group (NYSE:BT) -- Three (OTCPK:HUWHY), O2 (NYSE:TEF) and Vodafone (NASDAQ:VOD) could see fees for the 900 MHz and 1800 MHz bands rising to a total £223.3M/year ($345.5M/year) -- up from the combined £64.4M/year they pay now.
    • Considering proportional increases, EE might see its current £24.9M/year rise to £75.6M.
    • Related mobile stocks were up today, with the exception of Vodafone, which saw a downgrade from Bank of America: ORAN +1.7%; OTCQX:DTEGY +1.9%; TEF +1.4%; OTCPK:HUWHY +0.3%; VOD -3.3%.
    • Previously: Vodafone lower after BofA downgrade (Feb. 24 2015)
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  • Fri, Feb. 20, 9:23 AM
    • Deutsche Telekom (OTCQX:DTEGY) -- in a tussle over German customers with Unitymedia KabelBW (NASDAQ:LBTYA) and Kabel Deutschland (NASDAQ:VOD) -- is planning to offer fast Internet to another 5.9M homes.
    • The move to expand its VDSL network there means raising the bar on Deutsche Telekom's 2018 plans -- to have 80% of homes connected to fast Internet, up from 65%.
    • Kabel Deutschland owner Vodafone has been focusing on broadband as it plays catch-up on bundling, and it's a frequent subject of chatter as a Liberty Global buyout partner.
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  • Thu, Feb. 19, 9:02 PM
    • T-Mobile (NYSE:TMUS) gained 2.7% today (and another 0.5% in late trading) following its strong Q4 report this morning.
    • In the company's call today, CEO John Legere stretched like Armstrong to make a technical point that TMUS is actually the third-biggest U.S. carrier: He says most carriers stop counting "dead" MVNO accounts after 60-90 days, while Sprint (NYSE:S) waits six months. So Legere says Sprint is overcounting by 1.7M customers and is actually behind T-Mobile.
    • CFO Braxton Carter tells the Financial Times that the company's guidance (on the low side of expectations) is "conservative" and expectations are high: "We are still taking major flow from the duopoly (T, VZ) ... We are very pleased with our first-quarter momentum."
    • T-Mobile should take a Q1 hit in front-loading customer acquisition, but it expects free cash flow to turn positive at some point this year.
    • Aside from record customer growth (fueled in part by aggressive promotion), the company pointed to highly watched synergies with its MetroPCS brand -- projecting to reach full run-rate synergies of at least $1.5B by 2016. Net present value there is expected to be $9B-10B, up from original $6B-7B projection.
    • That's finally "kicking in," says Craig Moffett: "Synergies from the PCS deal, a key driver of our bull case, are coming in sooner and higher than expected" and that the firm "has at last turned the profitability corner."
    • Related: T-Mobile US (TMUS) Q4 2014 Results - Earnings Call Transcript (Feb. 19 2015)
  • Fri, Feb. 13, 10:12 AM
    • European cable giant Liberty Global (LBTYA) will pay €183.5M (about $209M) to a pair of companies who had raised issues with Liberty's €3B purchase of KabelBW.
    • Deutsche Telekom (OTCQX:DTEGY) and NetCologne will withdraw litigation that might have led to the unwinding of the 2012 deal. German competition regulators have OK'd the arrangement after forcing another look at the purchase in 2013.
    • Liberty class A shares are up 2.3% on the news on heavy volume so far.
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  • Wed, Feb. 11, 3:36 PM
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  • Wed, Feb. 4, 9:36 PM
    • BT Group (NYSE:BT) has reportedly put the finishing touches on its £12.5B purchase of EE, the UK's largest mobile operator.
    • EE's joint-venture partners each get their piece of the deal: Deutsche Telekom (OTCQX:DTEGY) will get a board slot and 12% stake in BT, and Orange SA (NYSE:ORAN) gets more cash and a 4% BT stake.
    • The pressure's now on Vodafone (NASDAQ:VOD), who recently abandoned an effort to get BT broken up and now must try a square-one entry into the British broadband market even as competitors are consolidating (Hutchison Whampoa plans a £10.25B buyout of O2).
    • Vodafone will likely pursue forcing the now-giant BT/EE to sell spectrum. “Whatever the regulatory approach it is crucially important that all providers must be able to compete effectively with a combined BT-EE," says a Vodafone spokesman.
    • Previously: BT Group profits up; pensions weighing on firm (Jan. 30 2015)
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  • Fri, Jan. 23, 10:32 AM
    • The team at Barclays ups European equity exposure in its Global Recommended Portfolio to 26.4% from 21.6% following the ECB's €60B per month asset purchase program launched yesterday. They note the €60B figure was ahead of the €50B whisper number.
    • The 26.4% exposure stands against just 15.3% in the MSCI global benchmark.
    • The team is also overweight Japan at 14.2 vs. 7.2%, though it did take some of those chips off the table as it upped Europe. Underweight? North America at just 39.1% vs. 55.4% for the MSCI benchmark.
    • In addition to boosting exposure to Europe, Barclays adds some individual names to the recommended portfolio: Unicredit (OTCPK:UNCFF, OTC:UNCFY), Marathon Petroleum (NYSE:MPC), and Deutsche Telekom (OTCQX:DTEGY).
    • Previously: On the way to parity? Euro tumbles (Jan. 23)
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  • Thu, Jan. 22, 5:20 PM
    • The FT reports Telefonica (NYSE:TEF) is "poised to agree a cash deal of more than £10bn ($15B)" to sell British mobile carrier O2 to Hutchison Whampoa, owner of rival carrier Three. A deal could be announced "as early as Friday morning."
    • The paper notes the deal would create the U.K.'s largest mobile carrier, claiming 31M+ subs and a 41% market share. EE, which BT is in talks to acquire from Orange (NYSE:ORAN) and Deutsche Telekom (OTCQX:DTEGY), claims a 32% share, and Vodafone (NASDAQ:VOD) a 24% share.
    • U.K. telecom regulator is bound to closely scrutinize a sale, given its historical preference for wanting four mobile carriers and Three's history of aggressive pricing.
    • Telefonica/Hutchison reportedly are looking to argue BT, which (like Vodafone) is looking to offer quad-play bundles, is "already changing the boundaries of how telecoms should be judged alongside TV and broadband services." The FT states regulators are likely to push for O2/Three to sell some of its spectrum for use by MVNOs such as TalkTalk, Tesco Mobile, and Virgin Media.
    • TEF +0.6% AH. An O2 sale would further Telefonica's efforts to lower its huge debt load. The carrier's net debt stood at  €41.2B ($46.8B) as of September.
    • Previously: Hutchison in talks for O2 mobile network
    • Update: Hutchison says it's in "exclusive talks" to buy O2 from Telefonica for over £10B. Telefonica has confirmed.
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  • Tue, Jan. 20, 11:28 AM
    • Believing T-Mobile (TMUS +1.4%) will see "an inflection to positive and rapidly growing [free cash flow] in 2015," Goldman's Brett Feldman has upgraded the Un-Carrier to Conviction Buy from Neutral, and hiked its target by $10 to $37.
    • Feldman also thinks T-Mobile will provide strong 2015 EBITDA guidance, thanks to slowing expense growth and higher MetroPCS synergies. He forecasts 2015 EBITDA of $7.7B (above a $7.09B consensus), and has upped his 2015 net postpaid subscriber add estimate by 500K to 3.5M (implies further share gains).
    • Meanwhile, in comments that might be aimed at U.S. politicians and regulators more than investors, Deutsche Telekom (OTCQX:DTEGY) CEO Tim Hoettges insists T-Mobile's current approach isn't sustainable, and that a merger is the U.S. subsidiary's best long-term hope for achieving needed scale. "I was intrigued by the idea of having a combination with Sprint and being the ‘super-maverick’ in the market. I hope that the political environment will change at one point in time."
    • T-Mobile and (especially) Sprint plunged last year after Sprint abandoned its merger efforts in the face of FCC/DOJ opposition. T-Mobile's recent postpaid share gains likely influenced regulatory thinking.
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  • Mon, Jan. 19, 4:03 AM
    • Deutsche Telekom (OTCQX:DTEGY) earmarked €23.5B ($27B) in the next five years for its German landline and mobile networks, small cells and the digitalization of infrastructure, CEO Timotheus Hoettges said on Sunday.
    • The spending puts pressure on Telefonica (NYSE:TEF) and Vodafone (NASDAQ:VOD), whose CEO Vittorio Colao said in November that he wants to reduce outlays when he completes a £19B ($29B) global network upgrade program dubbed Project Spring next year.
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  • Dec. 18, 2014, 7:58 AM
    • BT (NYSE:BT) is preparing a giant financing package including a £2B share placing to help fund its planned takeover of EE, The Telegraph reports.
    • The share placing will help keep the telecom giant’s level of debt manageable as it faces big bills next year from an increase in pension payments and costs.
    • Several of BT’s top ten investors have said they would support a share placing or rights issue to help finance the deal, worth a total of £12.5B, including £2B of EE debt.
    • BT is also expected to raise around £3B in the bond markets to help win the support of existing shareholders who may be resistant to any greater dilution.
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  • Dec. 15, 2014, 12:27 PM
    • BT (BT +0.2%) has entered into exclusive buyout talks with Orange (ORAN -0.9%) and Deutsche Telekom (OTCQX:DTEGY) regarding the purchase of their EE U.K. mobile JV. The exclusivity period will last several weeks, during which time BT will conduct due diligence.
    • The companies are discussing a deal in which BT would pay £12.5B ($19.5B) in cash and stock to acquire EE, which claims 24.5M mobile subs (#1 in the U.K.). Deutsche would gain a 12% stake in BT, and have the right to appoint one director. Orange would have a 4% stake.
    • BT and Orange have been halted. Telefonica (TEF -2.3%), which was talking with BT about selling U.K. carrier O2, has joined many other European names in selling off. Deutsche fell 1.8% today in Frankfurt.
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  • Dec. 12, 2014, 3:16 AM
    • The battle to sell BT (NYSE:BT) a mobile operator is heating up, after the chairman of O2's Spanish owner, Telefonica (NYSE:TEF), flew to London yesterday on word that rival EE was willing to offer more attractive terms to seal a deal.
    • "You can reasonably expect an announcement to be made by early next week, maybe as soon as this Friday," a source tells Reuters.
    • BT has been in talks with Telefonica and EE's owners, Deutsche Telekom (OTCQX:DTEGY) and Orange (NYSE:ORAN) for nearly a month about a deal to buy one of the mobile operators.
    • Previously: Report: BT opts for deal with O2, spurns EE
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  • Dec. 10, 2014, 10:00 AM
    • The U.K.'s This is Money reports BT (BT +0.5%) is "poised to strike" a deal to buy Telefonica's (TEF -0.4%) O2 unit, and that an announcement could be made as early as this week.
    • BT has shown interest in both O2 and Orange (ORAN -0.9%)/Deutsche Telekom's (OTCQX:DTEGY) EE JV, as the carrier tries to fully re-enter the U.K. mobile market (it already owns an MVNO) and offer quad-play bundles. O2 (has 24M customers) is believed to be a less costly M&A target than EE (27M customers).
    • Orange CEO Stephane Richard has said he expects BT to make a decision on which carrier to bid for before Christmas.
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Company Description
Deutsche Telekom (OTCQX: DTEGY) is one of Europe's leading telecommunications and information technology service companies. Deutsche Telekom is also the parent company of T-Mobile USA, one of four national wireless carriers in the U.S., with 33.7 million customers. In Europe, we are Germany?s... More
Sector: Technology
Country: Germany