Last week in telecoms: stocks diverge, from -14% for Veon to +14% for Intelsat

News General Europe 26 FEB 2018
Last week in telecoms: stocks diverge, from -14% for Veon to +14% for Intelsat

Last week (#8) was a good week for European telecoms stocks. Our index (+1.0%) outperformed the broad Eurostoxx 50 Index (+0.4%). The individual performances diverged widely, ranging from satellite operator Intelsat (+14%) to Veon (-14%), the former VimpelCom.

Shares repsonding to results

The latter responded to the 2017 results, as did a number of other stocks. Deutsche Telekom (+1.4%) raised its dividend and extended the contracts of its CEO and CFO. The results of its subsidiaries Magyar Telekom (-1.2%) and OTE (-1.8%) were greeted less favourably. Orange (+2.7%) reported in a similar way as Deutsche Telekom on 2017 and on its CEO. Orange Poland (-2.5%) saw its 2017 revenues come down. Telefonica (+5.0%) was able to maintain its dividend and its subsidiary Telefonica Deutschland (+0.4%) had its Capital Markets Day.

Cellnex (+3.2%) was boosted by news of Iliad (-1.2%) renting access to its Italian towers, for the latter’s upcoming launch in Italy. Liberty Global (-3.4%) wasn’t able to benefit from rumours in the Swiss press about a possible offer for Sunrise (-1.9%) or unlisted Salt. Freenet (+1.4%), the German challenger, announced the upcoming launch of a satellite TV service.
Stocks performing particularly well included BT (+6.9%), TIM (Telecom Italia, +5.2%), Türk Telekom (+4.9%), Norwegian NextGenTel (+3.9%) and the Russian operators MTS (+4.3%) and MegaFon (+3.8%). The weakest shares were Altice (-6.8%), Romanian Digi (-4.5%), Greek Forthnet (-4.3%) and satellite operator SES (-3.5%).

Year-to-date: performance range -32% to +26%

In the year to date (YTD) view, double digit gainers are Spanish MasMovil (+26%), MTS (+23%) and Intelsat (+18%) and Finnish DNA (+13%), not to mention Danish TDC (+30%), subject of an upcoming offer from Macquarie et al. The double digit losers range from -10 percent for Liberty Global, KPN, Swedish A3 and BT all the way to Veon (-21%) as well as British CityFibre (-26%) and TalkTalk (-32%).

Our index is down 3.9 percent YTD, against -1.8 percent for the EuroStoxx 50 Index.

Categories:

General

Companies:

KPN,  Orange,  Sunrise,  TDC,  TIM,  MegaFon,  MTS,  Digi,  OTE,  Telecom Italia,  Forthnet,  Freenet,  Iliad,  Intelsat,  Liberty Global

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Europe

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