Last week in telecoms: Q1 reports, Russian recovery and a Vodafone/Liberty report after the close

News General Europe 23 APR 2018
Last week in telecoms: Q1 reports, Russian recovery and a Vodafone/Liberty report after the close
Last week's main news came after Friday's close. It was a report in the Financial Times on progression in the merger talks between Vodafone (+1.5%) and Liberty Global (+3.2%). After confirming the talks in early February, Vodafone is reportedly getting closer to buying Liberty's assets in Germany and Eastern Europe. The Telecompaper telecoms index closed the week with a gain of 1.9 percent, outperforming the EuroStoxx 50 index's increase of 1.3 percent. Year-to-date both are still in negative territory, our telecoms index down 3.3 percent and the general market index down 0.3 percent.

Satellite stocks did well in week 16, especially SES (+17%) and Intelsat (+33%). The Russian shares in our basket recovered from the previous week, with MegaFon (+11%) and Veon (+16%) making double digit gains.

Q1 results

Telia (9.4%) benefited from its Q1 report, accompanied by a new share buy-back program. Orange Belgium was up on Q1 results too, while competitor Telenet (-0.1%) confirmed being interested in unlisted Voo, a company that Orange BE also considers a takeover target. Finnish telecoms darlings Elisa (-3.2%) and DNA (+0.1%) failed to impress with their Q1 reports.

Altice (+9.2%) was immune to both a report on an upcoming EU fine and S&P cutting its rating. A report of Bouygues considering an offer for Altice's French activities was denied. Spanish MasMovil (+4.9%) made headlines with plans to launch a bank under the Yoigo brand. Greek altnet Forthnet (-11%) and German cableco Tele Columbus (-4.2%) were the weakest telecoms stocks.

YTD: Intelsat leads

In the year-to-date view, Intelsat (+175%) extended its lead, ahead of MasMovil (+38%). TIM (+22%) is doing well on all the management turmoil from Vivendi and Elliott. Veon (-31%) closes the ranks as the weakest stock. KPN (-17%), welcoming its new CEO, remains the weakest incumbent.

Categories:

General

Companies:

Elisa,  KPN,  TIM,  Vodafone,  MegaFon,  Telenet,  Yoigo,  Telecompaper,  DNA,  Forthnet,  Intelsat,  Liberty Global,  Masmovil,  SES,  Tele Columbus

Regions:

Europe

Tags:

Financial figures, M&A buyouts & divestments, Market research

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Altice Europe meldt mindere resultaten over Q1

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German monopoly commission sees benefits in Vodafone-Unitymedia deal - report

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German CEOs, associations criticize Vodafone-Liberty Global deal

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GERMANY 26 APR 2018

German broadcast association calls for open access as condition for Vodafone-Unitymedia merger

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BELGIUM 20 APR 2018

Orange Belgium improves customer growth, revenues up 1% in Q1

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EUROPE 20 APR 2018

S&P cuts Altice's long-term credit rating from B+ to B

Standard & Poor's downgraded Altice's long-term credit rating by one notch to B, after placing it on credit watch with negative implications in January. At the time, the credit rating agency said that Altice's decision to reorganise its corporate structure, separating the US business, had removed a potential source of support for the European assets, impacting the company's ability to meet the agency's forecast for adjusted debt to EBITDA ratio. The downgrade reflects the fact that this ratio is expected to

SCANDINAVIA 20 APR 2018

Telia posts Q1 loss on divestments, starts share buyback as cash flow improves

Telia reported a net loss of SEK 600 million for the first quarter, versus a profit of SEK 7.05 billion a year ago, due to losses on divestments in central Asia. Revenues were still up 3.2 percent to SEK 19.85 billion, and adjusted EBITDA rose 7.4 percent to SEK 6.50 billion. Telia also announced plans to buy back SEK 5 billion in shares over the next three years. 

PORTUGAL 19 APR 2018

EU set to fine Altice for gun-jumping in PT takeover - report

EU antitrust regulators are expected to punish Altice with a fine for completing the acquisition of PT Portugal in 2015 without waiting for official approval, a source familiar with the matter told Reuters. The European Commission's decision could be adopted as early as next week, with the timetable subject to change. 

FINLAND 19 APR 2018

DNA lifts Q1 EBITDA 10% on sales up 4%, as mobile base grows

Finnish operator DNA said 2018 is off to a "strong start", with net sales in the first quarter to 31 March up 4.2 percent, EBITDA up 9.6 percent, the mobile subscriber base 2.9 percent higher year on year with larger ARPU and lower churn.

ITALY 19 APR 2018

Elliott lambasts Vivendi's 'failed stewardship' of Telecom Italia

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NETHERLANDS 19 APR 2018

Ibarra starts first day as KPN CEO

Maximo Ibarra succeeded Eelco Blok as CEO of KPN on 18 April, immediately after the end of the company's General Meeting of Shareholders (AGM). The supervisory board announced the appointment in October 2017; shareholders were informed during an extraordinary shareholders meeting in December. The supervisory board also reappointed Jan Kees de Jager as member (CFO) of the KPN's board of directors.

FINLAND 18 APR 2018

Elisa claims best ever Q1 but loses 24,700 prepaid mobile users and 4,100 fixed subscribers

Finnish operator Elisa said it had the best first quarter year in its history, with revenue rising to EUR 450 million in the three months to 31 March from EUR 416 million a year earlier, EBITDA growing to EUR 153 million from EUR 144 million and EBIT increasing to EUR 95 million from EUR 89 million. However, the company lost 4,100 fixed subscribers over the quarter as well as 24,700 prepaid mobile users, while post-paid mobile users rose by 900.

ITALY 17 APR 2018

Vivendi reiterates long-term strategy for Telecom Italia

French media giant Vivendi has called on Telecom Italia (TIM) investors to confide in its long-term strategy for the company in a document released to shareholders and seen by Reuters. Vivendi, which is TIM's leading shareholder with a stake of just under 24 percent, said it provided "stability and expertise" to TIM as opposed to the "quick fixes" offered by rival investor Elliott. Activist fund Elliott holds around 9 percent of TIM's ordinary shares and has proposed to replace six Vivendi-nominated board m

SPAIN 17 APR 2018

Masmovil to launch bank service under Yoigo brand - report

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FRANCE 17 APR 2018

Bouygues Telecom denies SFR takeover rumour

Bouygues Telecom's parent company issued a statement denying it was holding talks over a possible acquisition of a market rival. This was in response to information gathered by Bloomberg from unnamed sources regarding "early talks" over a possible bid for Altice's French assets between Bouygues and other investors, including private equity firm CVC Capital Partners. Altice told Bloomberg that SFR was one of its essential assets and a long-term project of the group.

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The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

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