Last week's absolute outperformer was KCom, after it accepted a takeover bid. Other significant news included network sharing in Spain and a dozen companies reporting their Q1 earnings. Proximus (-5.4% for the week) was among the weakest shares, apparently without significant news. The Telecompaper Stock Index European Telecoms Services was down 0.3 percent in week 17, versus an almost unchanged EuroStoxx 50 index.
UK
KCom (+38%) accepted a takeover offer from a pension fund, just weeks after rumours of Liberty Global (-2.5%) taking an interest in the firm through Virgin Media. KCom's share price dropped significantly in November 2018, from over 90 pence, on a profit warning. The pension fund is now offering 97 pence, for a total of just over GBP 500 million, or about KCom's value just before the profit warning.
Other shares on the verge of being taken off the stock exchange include Manx Telecom (Isle of Man), DNA (Finland), NextGenTel (Norway) and possibly Forthnet (Greece) and the Zayo Group.
Also in the UK, Telefonica's (-0.7%) O2 UK was rumoured to plan a return to the fixed-line market. BT (+0.1%), according to press reports, was looking to sell BT Global Services' Irish unit.
Spain
Telefonica seems to be nearing the sale of a data centre portfolio and approved its 2019 dividend. Euskaltel (+1.4%) unveiled plans to go nationwide in Spain, through its MVNO and a wholesale deal for access to Orange's (-1.8%) Spanish fibre network. Futher, the Spanish units of Orange and Vodafone (-0.4%) decided to expand their existing mobile network sharing deal to include 5G.
Reporting
Earnings reports generally received a negative reception, with Tele2 the main exception.
- Incumbents: Telia (-0.5%), DNA (-0.1%), KPN (-1.4%), Crnogorski Telekom (-5.4%), Hrvatski Telekom (unchanged)
- Challengers: Orange Belgium (-2.7%), Tele2 (+6.2%), Forthnet (-6.0%)
- Satellite: Iridium (+3.0%), SES (-4.3%)
- Data centre: Digital Realty (-3.0%)
