Last week in telecoms: all infrastructure shares up double-digit year-to-date, CK Hutchison prepares tower spin-off

Nieuws Algemeen Europa 5 AUG 2019
Last week in telecoms: all infrastructure shares up double-digit year-to-date, CK Hutchison prepares tower spin-off

The European telecoms sector was driven by earnings reports in week 31. Whereas the EuroStoxx 50 index was down 4.2 percent for the week, our European Telecoms Services index lost just 0.3 percent. Forthnet (+57%) was the biggest winner, but remains a micro cap. Altice Europe was up 23 percent, while the Turkish shares lost the most of our index constituents: Turk Telekom (-9.1%) and Turkcell (-7.7%).

The earnings reports from last week included:

In other news, Altice Europe is apparently near the sale of its Portuguese fibre network. Iliad is claiming EUR 500 million from Vodafone's (+3.0%) Italian unit over delayed number portability. Deutsche Telekom (-0.1%) was restructuring its business division in Germany. CK Hutchison (-4.8%) was grouping all its telecoms activities together, including the 3 Group Europe, and plans to spin off its mobile towers.

Some observations from a year-to-date glance at our index:

  • Forthnet leads as its share price more than tripled (+219%). Altice Europe (+148%) is second, ahead of takeover candidate KCom (+64%) and fibre operator Intred (+58%).
  • The four weakest shares are all German: 1&1 Drillisch (-40%), Telefonica Deutschland (-35%), Tele Columbus (-30%) and United Internet (-28%).
  • All infrastructure shares (fibre, tower and data centre operators) in our index are up double digit: Intred (+58%), Inwit (+54%), Cellnex (+52%), Equinix (+49%), Zayo (+48%), Interxion (+41%), Retelit (+10%) and Digital Realty (+10%).
  • The incumbents are generally doing alright. A limited number is down since the end of 2018 (esp. BT at -22%), but quite a few are up double digit, including Orange Poland (+39%), Turk Telekom (+34%), OTE (+29%), DNA (+23%), Siminn (+22%) and more.

Categories:

Algemeen

Companies:

Proximus,  TIM,  Vodafone,  Kcom,  Telenet,  Turkcell,  Turk Telekom,  3 Group,  Cyfrowy Polsat,  Equinix,  Eutelsat,  Forthnet,  Iliad,  Inmarsat,  Intelsat

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