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Deutsche Telekom AG ADR (DTEGY)

  • Tue, Nov. 17, 1:36 PM
    • Credit Suisse is looking ahead to rising rates and thinking defensively, which is prompting the firm to reduce its overweight position in pharmaceuticals -- which it says is one of the worst performing sectors amid higher inflation expectations.
    • The prospect of a possible Clinton administration, and the maintenance of Obama-era healthcare policies, also has the firm thinking pharmaceuticals will be subdued.
    • It's instead increasing an overweight stance in European telecoms based on their "proxy cyclical" nature. High leverage in that area means outperformance as credit spreads narrow, the firm says, with a particular liking for BT Group (BT +1.8%) and Deutsche Telekom (OTCQX:DTEGY +1.9%).
    • Meanwhile, Credit Suisse today cut its price target on Dish Network (DISH -0.3%) to $65; DISH is trading currently at $62.28.
    • Previously: Chief of BT Group's wholesale business leaving firm in spring (Nov. 16 2015)
    • Previously: Reuters: Warburg Pincus enters fray for T-Mobile Netherlands (Nov. 12 2015)
    | Tue, Nov. 17, 1:36 PM | Comment!
  • Wed, Oct. 28, 10:09 AM
    • BT Group (NYSE:BT) is up 3.5% in U.S. trading following the UK's provisional clearance of its £12.5B merger with mobile market leader EE.
    • The telecom giant had made its case to regulators for the takeover in early May. Opponents, particularly Vodafone (NASDAQ:VOD), have been vocal about the combination of the UK's biggest fixed-line telecom with its biggest mobile operator.
    • And despite a harder-line stance by EU Competition Commissioner Margrethe Vestager -- whose opposition led to TeliaSonera and Telenor calling off a Danish merger -- the EU's digital economy commissioner, Guenther Oettinger, thinks consolidation will continue to run: "I believe the consolidation process will continue - we have rather too many than too few companies in Europe."
    • As for Vestager's approach: "She sets a lot of store by variety of offerings, by competition, that's the one important factor. The other is that we need competitive companies who are big enough in the global competitive context."
    • Also up today: EE owners Orange (ORAN +0.5%) and Deutsche Telekom (OTCQX:DTEGY +1%).
    • Previously: TeliaSonera, Telenor call off Danish merger as regulators balk (Sep. 11 2015)
    | Wed, Oct. 28, 10:09 AM | Comment!
  • Tue, Oct. 20, 11:57 AM
    • Deutsche Telekom (OTCQX:DTEGY +2.8%) is working with Credit Suisse on a possible sale of its Dutch unit, T-Mobile Netherlands, that could bring up to €5B ($5.7B), Bloomberg reports.
    • That would be 7-8 times the unit's EBITDA, which last year was €630M on revenues of €1.55B.
    • Deutsche Telekom gets more than two-thirds of revenues from Germany and the U.S., so a sale of its Dutch unit could bring funds to cut debt ahead of what could be an aggressive move for spectrum by T-Mobile U.S. (TMUS -1.2%) in the spring.
    • In an acquisition-rich environment, bidders could include John Malone and Liberty Global (LBTYA -1.4%) as well as private equity. Liberty Global bought Belgium's Base from KPN for $1.4B in April.
    | Tue, Oct. 20, 11:57 AM | Comment!
  • Wed, Oct. 14, 10:39 AM
    • Moody's is raising its outlook for Europe's telecoms to stable as it predicts a return to revenue growth overall, amid growing consumer demand and spending capacity, and price increases.
    • The firm expects revenues overall to grow by 1-2% over the next 12-18 months.
    • "Increasing demand for broadband, improved consumer spending capacity and a change in focus from price competition to service quality leading to price increases will underpin European telecommunications service providers' return to revenue growth in 2016," says Moody's analyst Carlos Winzer.
    • He pointed to Telefonica (TEF -1.6%), whose ARPU was up sequentially to €71.80/month from €68.80/month and who's rolling out premium packages at premium prices. Moody's expects positive ARPU for Deutsche Telekom (OTCQX:DTEGY) amid similar premium pricing.
    • Despite a stable outlook on the Africa, Middle East and Turkish markets, slowing GDP in some countries (including Nigeria and those on the Arabian peninsula) could press revenue growth.
    • The outlook on Russia's big three, however -- Mobile TeleSystems (MBT +2.1%), MegaFon (OTC:MFOYY) and VimpelCom (VIP +0.8%) -- stays negative amid the Russian economic crisis.
    | Wed, Oct. 14, 10:39 AM | 2 Comments
  • Fri, Oct. 2, 10:13 AM
    • Vivendi (OTCPK:VIVHY -1.7%) -- already the biggest shareholder in Telecom Italia (TI -3.7%) -- is making moves toward boosting its stake to about 19%, Reuters has reported, with an eye toward increasing its clout there.
    • Banks have reportedly arranged derivative deals so that Vivendi can add to holdings. Chairman Vincent Bollore is on record as saying he wants to keep investing in Telecom Italia as part of a southern Europe strategy, and TI CEO Marco Patuano says that's "always fine."
    • One source says Bollore wants to be kingmaker in any upcoming European consolidation, which might include TI tie-ups with Orange (NYSE:ORAN) or Deutsche Telekom (OTCQX:DTEGY).
    • Vivendi could claim at least two seats on TI's board, but hasn't done so yet; so far it says it's just a long-term investor. But the investments could keep coming.
    | Fri, Oct. 2, 10:13 AM | 1 Comment
  • Fri, Sep. 18, 1:25 PM
    • Antitrust regulators in Europe are set to launch a wide probe into Hutchison Whampoa's (OTCPK:HUWHY) £10.3B bid for O2, the UK mobile unit of Telefonica (TEF -4.1%) -- which likely means key concessions are coming, Reuters reports.
    • The plan to merge Hutchison's Three with O2 was a long time coming, and now it's facing what looks like a sterner regulatory regime whose stance helped kill a plan to merge the Danish operations of TeliaSonera and Telenor.
    • The EU's competition authority has an Oct. 16 deadline for preliminary review but is expected to follow with a full-blown investigation that should last five months.
    • Proper concessions are likely to be challenging, however: Three UK shares a 3G network with market leader EE (ORAN, OTCQX:DTEGY), while Telefonica shares some towers with Vodafone (NASDAQ:VOD) -- which has been vocal about ensuring competition as the UK market consolidates.
    | Fri, Sep. 18, 1:25 PM | Comment!
  • Fri, Aug. 21, 12:54 PM
    • Vodafone (VOD -2.8%) has pulled out of a six-company competition to take over Lebanon's two mobile operators.
    • The government's two mobile firms, Touch and Alfa, were being run by Zain and Orascom Telecom Media and Technology, though the two companies' management contracts expired two years ago.
    • Vodafone's pulling out leaves five others competing: Zain, Orange (ORAN -0.2%), Maxis, Turkcell (TKC -1.9%) and a unit of Deutsche Telekom (OTCQX:DTEGY), as OTMT didn't submit a bid application on time.
    | Fri, Aug. 21, 12:54 PM | 1 Comment
  • Wed, Jul. 29, 11:12 AM
    • Deutsche Telekom (OTCQX:DTEGY +1.5%) and Boingo Wireless (WIFI -1.3%) have inked a global roaming deal giving DT's business customers access to Boingo's million-plus network of Wi-Fi hotspots worldwide, in more than 50 countries.
    • DT recently launched its "Business WiFi" product to customers. Boingo, for its part, recently added more than 100K Time Warner Cable hotspots in the U.S. to its network.
    • Along with the deal, Deutsche Telekom is dealing with BSG Wireless to ease connections for its business users.
    | Wed, Jul. 29, 11:12 AM | Comment!
  • Mon, Jun. 22, 12:13 PM
    • With consolidation in the air, telecom players are trading significantly higher today Europe-wide.
    • Telefonica (TEF +4.5%), Telecom Italia (TI +1.9%), Orange (ORAN +8.2%), Vodafone (VOD +1.8%), KPN (OTCPK:KKPNY +5.5%), Deutsche Telekom (OTCQX:DTEGY +5.4%), Belgacom (OTCPK:BGAOY +2.7%), TeliaSonera (OTCPK:TLSNY +1.9%) and Pharol (OTCPK:PTGCY +8.5%) are all among firms getting a punch up today.
    • The richness of the proposed deal by Numericable-SFR (Altice, OTC:ATCEY) for Bouygues Telecom (OTCPK:BOUYY) -- at €10B, it suggests one of the highest regional industry EBITDA multiples (14.4x) in years -- may be lifting firms in a consolidation-friendly atmosphere, even with the hurdles this deal has to overcome.
    • French regulators have gone on the record against the deal, calling for investment: “Consolidation isn’t advisable for the sector,” says econ minister Emmanuel Macron. “Employment, investment and giving customers the best possible service should be the priority.”
    • In addition, a reluctant Martin Bouygues would need to be convinced to change his mind and sell.
    • Previously: Altice confirms Bouygues Telecom bid (Jun. 22 2015)
    | Mon, Jun. 22, 12:13 PM | 2 Comments
  • Wed, Jun. 17, 3:45 PM
    | Wed, Jun. 17, 3:45 PM | 9 Comments
  • Wed, Jun. 17, 8:48 AM
    | Wed, Jun. 17, 8:48 AM | 9 Comments
  • Thu, Jun. 11, 5:45 PM
    • Dish Network (NASDAQ:DISH) is talking to banks about funding a bid to acquire T-Mobile (NYSE:TMUS), to the tune of $10B-$15B in borrowing for the cash part of the deal, The Wall Street Journal is reporting.
    • T-Mobile is up 3.6% after hours; Dish is up 1.7%.
    • The deal's in early stages, but as discussed, the stock portion would leave T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) with a significant minority stake in the combo.
    • No word on how much Dish would pay for T-Mobile, but talking with banks shows it's moving forward.
    • In the previous discussions, one key issue already seems sorted out among the personality-laden leaders: Dish CEO Charlie Ergen would serve as chairman, while T-Mobile's John Legere would be CEO.
    | Thu, Jun. 11, 5:45 PM | 12 Comments
  • Fri, Feb. 27, 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.
    | Fri, Feb. 27, 9:44 AM | Comment!
  • 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)
    | Tue, Feb. 24, 8:02 PM | 1 Comment
  • 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)
    | Thu, Feb. 19, 9:02 PM | 15 Comments
  • 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.
    | Fri, Feb. 13, 10:12 AM | Comment!
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