DTE.DE - Deutsche Telekom AG
| Previous close | 15.06 |
| Open | 15.05 |
| Bid | 15.01 x 910400 |
| Ask | 15.01 x 288200 |
| Day's range | 15.00 - 15.09 |
| 52-week range | 13.94 - 16.26 |
| Volume | 5,854,066 |
| Avg. volume | 8,971,658 |
| Market cap | 71.536B |
| Beta (3Y monthly) | 0.40 |
| PE ratio (TTM) | 25.59 |
| EPS (TTM) | 0.59 |
| Earnings date | 19 Feb 2020 |
| Forward dividend & yield | 0.60 (4.00%) |
| Ex-dividend date | 2020-03-27 |
| 1y target est | 17.40 |
- Bloomberg
Europe Edges Toward 5G Restrictions After Blast of U.S. Lobbying
(Bloomberg) -- U.S. officials flooded Europe last week, and by the time they had departed, their efforts to persuade their allies to cut back in using Huawei Technologies Co. equipment appeared to finally be gaining traction.Europe has been caught between two major world powers, China and the U.S., over the question of whether to include Huawei in the roll-out of its future 5G mobile networks. Many European countries don’t want to anger Beijing, a significant trading partner, while the U.S., an important security ally, has repeatedly said it may reassess intelligence sharing with countries that utilize Huawei in their 5G networks.But on Tuesday the European Union agreed its member states should adopt a “comprehensive and risk-based” approach to the security of 5G, which includes using only trustworthy parties for components critical to national security, and should consider the laws of a supplier’s home country before buying their products.A day later, following a NATO summit U.S. President Donald Trump and German Chancellor Angela Merkel discussed “the need to exclude untrusted providers,” a White House spokesman said in a statement. The discussion came as the country’s largest phone carrier, Deutsche Telekom AG, announced it had stopped orders for 5G equipment due to Huawei’s uncertain status. Merkel has previously insisted that individual vendors such as Huawei should not be banned from the outset.While American diplomats see the new EU security conclusions as a sign of progress, it’s not yet certain it will lead to a change in Huawei’s status in Europe. Under current EU law, only member states can ban vendors from their markets. The countries are expected to agree to recommendations by the end of the year. These could include flagging specific vendors as untrustworthy, or suggesting updates to EU or national legislation.The ambiguities of European regulation haven’t stopped U.S. officials from declaring some form of victory.“We were very pleased to see the conclusions on 5G that the EU council released,” Rob Strayer, the U.S. State Department’s deputy assistant secretary for cyber, said on a conference call with reporters Thursday.Keith Krach, the State Department’s under secretary for economic growth, energy, and the environment also told reporters in Paris: “I would like to salute the EU leadership on the position they’ve taken on securing 5G.”For their part, EU officials said member states agreed to the 5G conclusions to safeguard the region’s own interests, not to appease any outside powers. They added that the U.S. and China weren’t mentioned in the discussions leading up to the agreement, nor were there any real controversial issues among the member states.Part of the U.S. optimism comes as European companies begin to turn their back on Huawei. Deutsche Telekom said it was hoping for “political clarity for the 5G build-out in Germany as soon as possible” as it announced it had stopped orders on 5G equipment due to Huawei’s uncertain status. No other major European telecommunications company has announced a full ban, although Vodafone Group Plc in January suspended purchases of Huawei gear for the core of its European networks.A key issue for European and U.S. officials is a 2017 Chinese law that mandates any organization and citizen to support and assist national intelligence in their investigations. The U.S. has argued that allies should only purchase equipment from countries that have independent court systems. Strayer has said he isn’t trying to get allies to ban a particular company, but instead, is urging allies to adopt a common security standard -- which Huawei doesn’t meet.“We’ve said for some time that we want to maintain our very close cooperation on law enforcement and military matters with governments around the world,” said Strayer said on Tuesday in an interview with Bloomberg TV. “But when we’re not able to share information securely, as would be the case when they have untrusted vendors in their 5G networks, we’re going to have to reassess how we share that information in the future.”A Huawei spokesman pointed Bloomberg News to a statement in which the company welcomed the EU’s “fact-based approach,” adding that the Chinese company is a trusted partner throughout Europe and that its 5G solution is “safe and innovative.”The political agreement by the European member states aims to set one approach on 5G across capitals, preventing any one country from being singled out or becoming a potential target for retaliation by China or the U.S.In the U.K., a key U.S. ally, Conservative party politicians are burnishing their hawkish security credentials during a general election campaign by dangling the prospect of a ban on a Chinese supplier. Prime Minister Boris Johnson, speaking at the NATO Summit in London on Wednesday, said he didn’t want Britain to be “unnecessarily hostile to investment from overseas,” but “we cannot prejudice our vital national security interests.”U.K. Chancellor of the Exchequer Sajid Javid appeared to echo Johnson’s stance. “When it comes to our national security, no cost is too high,” he said, speaking to LBC radio. The Conservatives are capitalizing on data that shows opposition Labour leader Jeremy Corbyn polling badly on whether he can be trusted on national security issues.It wasn’t all a success for the U.S., however. The following day, Johnson was seen using what appeared to be a Huawei P20 smartphone to take selfies. His office said that the phone belonged to a staffer.\--With assistance from Kitty Donaldson and Rudy Ruitenberg.To contact the reporters on this story: Alyza Sebenius in Washington at asebenius@bloomberg.net;Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Andrew MartinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
Exclusive: Deutsche Telekom freezes 5G deals pending Huawei ban decision
Deutsche Telekom has put all deals to buy 5G network equipment on hold, it said on Wednesday, as it awaits the resolution of a debate in Germany over whether to bar Chinese vendor Huawei on security grounds. Europe's largest telco finds itself in a tight spot after senior lawmakers in Chancellor Angela Merkel's coalition rebelled and called for a ban on Huawei, which is a key vendor for its existing mobile networks in Germany and Europe. At the same time in the United States, a $26 billion deal for Deutsche Telekom's T-Mobile unit to merge with Sprint hangs in the balance.
- Reuters - UK Focus
UPDATE 3-Modest Orange dividend overshadows European mobile mast plans
Orange said it planned to carve out its mobile towers in most European countries to shore up the group's value, but the move was overshadowed by the French telecom firm's modest dividend outlook, sending its shares lower. The company is following similar moves by other European firms that are looking to sell mobile networks as infrastructure valuations surge on interest from investors such as U.S. private equity firm KKR and Spain's Cellnex. The infrastructure sale aims to beef up its valuation as tough regional competition hampers Orange's growth and margins.
- Reuters - UK Focus
Telecoms group Orange kicks off the carving-out of its towers in Europe
Orange said it planned to carve out its mobile towers in most European countries where it is present, in a move aimed at shoring up the telecom group's value as tough competition in the region has hampered its growth and margins. The Paris-based company will retain control over all these new entities and is hoping to eventually merge them into a European company. "It is a vehicle that will enable us to play a possible role in consolidation at European level," Chief Executive Officer Stephane Richard said in a call with reporters on Wednesday.
- Simply Wall St.
Despite Its High P/E Ratio, Is Deutsche Telekom AG (ETR:DTE) Still Undervalued?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at...
- Reuters - UK Focus
Romania-based Digi ruled out of bidding for Hungary 5G spectrum
Romania-based Digi Communications has been ruled out of the bidding process for high-speed 5G mobile spectrum in Hungary, national telecoms regulator NMHH said on Thursday. The announcement follows a preliminary ruling in September, which excluded Digi and named registered bidders as Deutsche Telekom's local unit Magyar Telekom, Britain's Vodafone and Telenor. The NMHH said Digi was not registered because it failed to meet the requirements for bidding.
- Reuters
Deutsche Telekom examines possible merger with Orange - Handelsblatt
Deutsche Telekom is examining a possible tie-up with French peer Orange, German business daily Handelsblatt reported on Wednesday, citing managers close to the matter. A spokesman for Orange said "there are no ideas or discussions going on" regarding such an initiative. Deutsche Telekom declined to comment.
- Reuters
Deutsche Telekom examines possible merger with Orange: Handelsblatt
Deutsche Telekom is examining a possible tie-up with French peer Orange, German business daily Handelsblatt reported on Wednesday, citing managers close to the matter. A spokesman for Orange said "there are no ideas or discussions going on" regarding such an initiative. Deutsche Telekom declined to comment.
- Reuters - UK Focus
UPDATE 2-European shares continue climb on U.S.-China trade optimism
European stocks rose for the fourth session on Thursday, as telecom stocks rose after a report that Deutsche Telekom is examining a possible merger with France's Orange, while hopes for an end to the U.S.-China trade dispute also helped the mood. Deutsche Telekom gained 1.3% after the German business daily Handelsblatt report. The pan-European STOXX 600 index finished 0.3% higher at a new 4-four peak as comments from U.S. President Donald Trump on Tuesday that Washington was in the "final throes" of work on a deal continued to buoy the sentiment.
- Reuters
Deutsche Telekom to stick to multi-vendor strategy
Deutsche Telekom on Wednesday declined to comment on a magazine report that it would phase out some equipment from Chinese vendor Huawei Technologies over time, saying only that it relies on multiple network providers. Business weekly Wirtschaftswoche reported earlier, citing company sources, that Deutsche Telekom would swap Huawei components out of its core network as part of the routine replacement of older equipment. Huawei denies this.
- Bloomberg
In the Age of 5G, the Hottest Telecom Assets Are ... Towers
(Bloomberg Opinion) -- There are plenty of reasons Deutsche Telekom AG and Vodafone Group Plc make for uneasy bedfellows. But if Europe’s biggest telecommunications firms can overcome their differences, they would benefit from forging a strong alliance for one of their biggest cost centers: towers.The structures on which mobile operators install their antennas have generated a flurry of dealmaking as valuations soar and European carriers sense an opportunity to reduce debt and costs. By some estimates, towers account for a third of total capital expenditures. Since July, more than $8 billion of deals have been announced in Europe.Sexy they are not. Yet towers are critical vertebrae for wireless networks, and are ever more in demand with the advent of 5G networks. The new technology, which promises to transmit bigger gobs of data at faster speeds, will depend on antennas with a shorter range than previous generations because of the spectrum of bandwidth being used. That means more towers will be needed to post more antennas at closer intervals to power a network, making it increasingly attractive for operators to share them.With that in mind, Vodafone is already separating out its towers arm. An umbrella company will hold the stakes in its U.K. joint venture with the local unit of Madrid-based Telefonica SA, as well as a combination in Italy with Telecom Italia SpA’s Inwit subsidiary, pending regulatory approval. Options are being evaluated for Vodafone’s similar assets across the rest of Europe. Germany is at the top of the list.Just last week, Deutsche Telekom, Vodafone and Telefonica agreed to work together to build as many as 6,000 mobile sites in a bid to cut costs. They could do more, and merging Vodafone’s towers with those of Deutsche Telekom, the larger rival, would make the most sense for both parties. The former German national carrier has intimated it’s open to “possible scenarios,” especially given the German government’s ambitious target of having 98% of German homes, every highway and all federal roads equipped with download speeds of 100 megabits per second by the end of 2022.The timing isn’t perfect. The two firms’ rivalry is intensifying in Germany after the British firm agreed to buy Liberty Global Plc’s local cable assets for 19 billion euros ($16.5 billion). In trying to stymie the deal, Deutsche Telekom Chief Executive Officer Tim Hoettges questioned the implications that foreign ownership of major television assets would have for German democracy.But a towers tie-up could yield three major benefits: It would reduce debt, underpin an improved sum-of-the-parts valuation, and cut exposure to major capital expenditures over the next decade. Hoettges teased the idea at a conference in Barcelona last week, saying, “I’m ready for an IPO, I’m ready for a partnership — if we find one.”Mimicking Vodafone’s Italian deal would be sensible. There, Vodafone had the more valuable assets, so it received a 2.1 billion-euro cash payment and a 37.5% stake in the firm, Inwit. Telecom Italia has a holding of the same size, with the remaining 30% publicly traded.In Germany, Deutsche Telekom would expect to receive the cash payment. It has 9,000 towers, and Vodafone just 4,000. And since towers companies can sustain higher levels of debt, that money needn’t come from Vodafone itself. The new firm’s higher leverage capacity might be able to fund the deal.With the cash, Deutsche Telekom could reduce its net debt, which is set to jump significantly when U.S. subsidiary T-Mobile U.S. Inc. seals the $58 billion acquisition of Sprint Corp., expected early next year. That will push debt above Deutsche Telekom’s target ratio, Bloomberg Intelligence analyst Aidan Cheslin estimates.The value of the new towers company could approach 15 billion euros, based on earnings estimates and peer valuations. By selling a minority stake to the public market, Vodafone and Deutsche Telekom would be able to raise more capital and highlight value of the towers businessThe main reason not to merge the operations — being able to brag your network is better than someone else’s — is meanwhile eroding, given the network-sharing agreement reached last week.The biggest hurdle to a deal might be antitrust concerns. But other deals that seemed a gamble — such as Deutsche Telekom merging its Dutch business with the that of Swedish rival Tele2 AB — have been cleared. The pace of towers combinations is accelerating. France’s Orange SA has hinted it’s also evaluating its infrastructure assets, and will reveal more details Dec. 4. Europe’s two biggest telecoms giants should do so too, and together.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Reuters - UK Focus
EXPLAINER-What's behind Labour's plan to overhaul BT and the British broadband network?
Britain's opposition Labour Party says if it wins the Dec. 12 election it will nationalise BT's broadband network and provide free internet for all within a decade, a radical election pledge to roll back decades of private ownership. The UK's biggest broadband and mobile phone provider was the flagship of Conservative Prime Minister Margaret Thatcher's policy of selling state-owned assets, a political revolution that she said would improve efficiency and "spread the nation's wealth among as many people as possible".
- Reuters - UK Focus
Deutsche Telekom, on lookout for towers partners, heaps praise on Cellnex
Deutsche Telekom is keen to float or find a partner for its mobile towers assets, Chief Executive Tim Hoettges said on Wednesday, lavishing praise on Spain's Cellnex for its role in developing the telecoms infrastructure business. Europe's largest telecoms group carved out its Deutsche Funkturm towers unit years ago but, unlike its rival Vodafone which plans to float its own towers unit, has yet to take concrete steps to find a buyer or partner.
- Bloomberg
France's Bad Boy of Telecoms Joins the Geriatric Set
(Bloomberg Opinion) -- Xavier Niel is supposed to be the bad boy of French telecoms. He never finished college, once ran an online sex-chat service, and shook up incumbents like Orange SA with cheap pricing when he launched Free Mobile in 2012.That makes one element of his push to extend control over Free’s parent Iliad SA particularly surprising: the implicit admission that the Paris-based company is becoming just like any other boring telecom company. It's an overdue acknowledgement of market realities.It all comes down to the dividend. Mobile carriers have appealed to investors over the past decade not for their growth prospects but their generous dividend payouts. European telecommunications firms will have an average dividend yield of 5% this year, according to estimates compiled by Bloomberg. That compares with the 3.3% average of the broader Stoxx 600 Index of European companies.Iliad has differed from the crowd. Its 12-month yield has averaged 0.8% since 2009. That’s because it promised growth — the stock climbed almost three-fold between 2009 and 2017. But the past two years have been a different story. Before today, the shares had fallen 63% from their 2017 peak as French rivals reclaimed market share from the low-cost upstart.On Tuesday, Niel announced plans to boost his holding in the firm by as much as 20 percentage points. The complicated structure will see Iliad buy back up to 1.4 billion euros ($1.5 billion) of stock for 120 euros per share, then issue new shares of an equivalent amount that Niel has pledged to buy, in a rights issue to which other shareholders can also subscribe. At the same time, Iliad announced it would increase the dividend by a chunky 189% to 2.60 euros, bringing the yield to more than 2%. That’s still very much at the low end of its peers but a substantial change in policy, particularly at a time when the region’s giants — Vodafone Group Plc and Deutsche Telekom AG — are cutting their dividends as they anticipate increased spending on 5G networks.For Niel, it’s a canny way of using the company’s stronger balance sheet to extend his control. Iliad is expecting proceeds of more than 2 billion euros from the sale of infrastructure assets this year. If he increases his stake to above 70% from the current 52%, as the buyback and rights issue might allow, he can expect annual dividend proceeds exceeding 100 million euros. That can help him service the personal debt that he’s likely assuming to fund the rights issue. The move may also strengthen Niel's hand and his financial upside, should the perennial on-again, off-again efforts to consolidate the French market resume.The steps at Iliad don’t particularly disadvantage existing shareholders financially, even if they do seem to be very much in Niel’s interest. They’re under no obligation to sell, and have already benefited from a jump in the share price, which climbed 18% on Tuesday. Nor does the increased payout significantly weaken the firm’s finances: The dividend payout will top 154 million euros. Net debt of 3.7 times Ebitda will fall closer to 2.5 times Ebitda. And it’s far less outrageous than the self-interested efforts of fellow French billionaire Vincent Bollore and his family to extend control over Vivendi SA. The Bollores are simply carrying out a buyback of the media conglomerate’s shares, then canceling them, leaving the family with a bigger stake without increasing their financial risk.But for all of Niel’s assertions that the investment reflects his “confidence in the company’s industrial project,” he will likely need Iliad to continue the more generous dividend payouts to service his greater debt. That will gradually chip away at Iliad’s ability to engage in costly price wars to drive market share. Instead, it’s becoming more like its rivals, generating steadier, more predictable returns, rather than promising stratospheric stock growth.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Reuters - UK Focus
German mobile operators team up to plug network holes
Telefonica Deutschland said on Monday it would team up with competitors Deutsche Telekom and Vodafone to build 6,000 new mobile masts in Germany, as part of a joint push to close gaps in network coverage. The approach, supported by the network regulator, seeks to meet coverage requirements without further straining the finances of network operators after they spent 6.5 billion euros ($7.2 billion) on frequencies for 5G services. Telefonica Deutschland, controlled by Spain's Telefonica , said that 1&1 Drillisch - a virtual network operator that also won 5G spectrum and plans a fourth national network - had been invited to join the group.
- Reuters
Deutsche Telekom cuts dividend as it faces U.S. merger uncertainty
Deutsche Telekom said on Thursday it would cut its dividend for 2019, reflecting uncertainty over the outcome of a proposed U.S. mega-merger and following rival Vodafone as the industry grapples with the heavy cost of building 5G networks. The significant shift in the dividend policy at Europe's largest telecoms group sent the company's shares 2.5% lower, even as it reported strong third-quarter results and raised its profit outlook on strong growth at U.S. unit T-Mobile . Deutsche Telekom plans to pay a 60 euro cent ($0.66) dividend for 2019, down from last year's 70 cents, regardless of the outcome of T-Mobile's $26.5 billion (£20.6 billion) takeover of rival Sprint that is currently stalled.
- Reuters - UK Focus
UPDATE 2-Hungarian minister opens door to Huawei for 5G network rollout
Hungary's foreign minister opened the way on Tuesday for Chinese telecoms giant Huawei to be involved in the rollout of the country's high-speed 5G network. The United States has piled pressure on its allies, including Hungary, to shut out Huawei Technologies, the leading telecoms equipment vendor with a global market share of 28%, saying its gear contained "back doors" that would enable China to spy on other countries. Huawei has denied the accusations.
