The TP Stock Index European Telecoms was up 1.8 percent in week 7, but still trailed the general market, as the EuroStoxx 50 index won 3.4 percent. A number of micro caps made double digit gains (Forthnet 42%, NextGenTel 23%, 3U 15%), but the heavy-weights made limited advances (Deutsche Telekom +0.8%, Vodafone +1.8%). The most eye-catching news from last week was the rumour of Liberty Global (+2.1%), via Virgin Media UK, looking at a possible offer for Kcom (+5.8%). Tele Columbus (-11%) was the week's biggest loser. TIM (+8.8%) was up on news of CDP raising its stake.
Earnings season was well underway with 10 companies reporting:
- Incumbents: Telekom Austria (-4.3%)
- Belgium: Telenet (-4.6%), Orange Belgium (+5.7%)
- Nordics: Tele2 (+4.0%), A3 (+6.7%), NextGenTel.
- Other: Equinix (+6.5%), Digi (-3.2%), Eutelsat (-3.4%)
- Vodafone Qatar.
Apart from the possible Virgin Media/Kcom tie-up, M&A news was limited. NextGenTel agreed a buy-out offer. Deutsche Telekom suffered a set-back as the US government appeared to be leaning against a T-Mobile US/Sprint merger. Telefonica confirmed that it considers offloading its data centre assets.
Network expansion deals were reported by Tiscali (+3.5%) in Italy and MasMovil (-1.1%) in Spain. The former closed a deal with Fastweb, a unit of Swisscom (+0.8%). The latter is looking to expanding its access to the Telefonica (+2.6%) networks.
In the year-to-date view, Turk Telekom (+35%) and Turkcell (+23%) are ahead. Around 20 shares are up in double digits this year and fewer than ten are down double digits. The latter include Tele Columbus (-36%), Iliad (-28%) and 1&1 Drillisch (-23%).
