Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Vodafone Group plc    VOD   GB00B16GWD56

VODAFONE GROUP PLC (VOD)
Mes dernières consult.
Most popular
  Report  
SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Deutsche Telekom U.S. customer exodus slows

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/10/2012 | 11:29am CET
Logo of German company Deutsche Telekom is pictured at the CeBit computer fair in Hanover

FRANKFURT (Reuters) - Deutsche Telekom (>> Deutsche Telekom AG) reported better-than-expected quarterly core earnings on Thursday as it lost fewer customers in the United States and signaled a stabilization in its European business.

FRANKFURT (Reuters) - Deutsche Telekom (>> Deutsche Telekom AG) reported better-than-expected quarterly core earnings on Thursday as it lost fewer customers in the United States and signaled a stabilization in its European business.

Deutsche Telekom had been struggling as its U.S. unit T-Mobile USA, which it tried to sell last year, hemorrhaged customers, while the European debt crisis hurt its business in that region.

"This was a very satisfying quarter for us," Deutsche Telekom Chief Executive Rene Obermann said in a statement.

"We have made significant progress in many areas."

First-quarter earnings before interest, tax, depreciation and amortization (EBITDA), excluding special items, were flat at 4.48 billion euros ($5.79 billion), at the top of analyst expectations of between 4.32 billion and 4.48 billion.

T-Mobile USA's operating income rose 7.2 percent to $1.3 billion. It lost 248,000 contract customers, fewer than the 802,000 contract customers it lost in the previous quarter and the 382,000 in the same quarter last year.

The Bonn-based group expects 2012 underlying earnings excluding special items to ease to around 18 billion euros from 18.7 billion last year. The average in a Reuters poll is 18.1 billion.

Deutsche Telekom shares were up 3.5 percent by 5 a.m. EDT, outperforming a 0.4 percent stronger sector index <.SXKP> and the German blue chip DAX <.GDAXI>, which gained 0.1 percent.

"Core operating profit came in in-line with expectation," said analyst Heino Ruland at Ruland Research. "Also it seems T-Mobile-USA did very well."

Deutsche Telekom signaled a stabilization in its European business, with positive revenue trends in Romania and Greece, but also noted that economic circumstances remained difficult.

That echoed remarks by Telekom Austria AG (>> Telekom Austria), which marginally beat market expectations.

UGLY BABY

Net profit dropped 50 percent to 238 million euros, missing a consensus forecast of 502 million euros, due to another impairment for the T-Mobile USA business and losses in the group's financial activities.

T-Mobile USA was a strong growth engine for Deutsche Telekom in its early days but is a rundown asset now.

Deutsche Telkom tried to sell the U.S. business to AT&T (>> AT&T Inc.) for $39 billion, but fierce regulatory opposition scuppered the deal, leaving Deutsche Telekom with a $6 billion breakup package.

Over the next two years, network investments at T-Mobile USA will increase by about $1.4 billion. Over time, T-Mobile USA will spend a total of $4 billion on upgrading its network for high-speed wireless services based on a technology known as Long Term Evolution (LTE).

On Wednesday, Bloomberg reported T-Mobile USA was discussing a merger with MetroPCS Communications Inc (>> MetroPCS Communications Inc).

The report sparked analysts at BernsteinResearch to say: "T-Mobile and MetroPCS: Oh my, what an ugly baby."

A German fund manager, who asked not to be named, said the deal would make sense in terms of spectrum pooling, and the two companies could realize some operating and capital expenditure synergies.

"However, it doesn't help T-Mobile USA in terms of its contract subscribers losses," he said.

CEO Obermann on Thursday declined to comment.

Deutsche Telekom shares have lost about 2 percent so far this year, slightly ahead of the STOXX Europe 600 Telecommunications index <.SXKP>, which has lost 4 percent.

Its shares trade at 12.4 times 12-month forward earnings, about 7 percent below its 10-year average, but above peers such as France Telecom (>> FRANCE TELECOM) and Vodafone Group (>> Vodafone Group plc), which trade at multiples of 8 and 10.5 respectively. ($1 = 0.7733 euros)

(Additional reporting by Myria Mildenberger; Editing by Helen Massy-Beresford)

By Harro Ten Wolde

Valeurs citées dans l'article
ChangeLast1st jan.
AT&T 1.15% 36.71 Delayed Quote.-5.43%
DEUTSCHE TELEKOM -2.37% 12.97 Delayed Quote.-10.21%
ORANGE 0.84% 13.81 Real-time Quote.-5.39%
TELEKOM AUSTRIA AG 0.80% 7.53 End-of-day quote.-1.70%
VODAFONE GROUP PLC --End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on VODAFONE GROUP PLC
05:30pVODAFONE : Can Vodafone salvage itself?
AQ
03:27pVodafone, Telefonica cooperate on fibre-optic connections for mobile networks
AQ
02:41pIDEA CELLULAR : raises Rs3,500cr through QIP at Rs82.5 per share
AQ
01:52pVODAFONE : Huawei Complete World's First 5G Call, Dual Connectivity Using 3GPP-B..
AQ
01:52pVODAFONE : Aberdeen to Become Scotland's First Gigabit-Speed Fibre Broadband Cit..
AQ
01:38pAxiata Might Consider Divesting Idea Cellular Stake, CEO Says
DJ
09:48aVODAFONE : files for bankruptcy
AQ
05:12aVODAFONE : and Mango make digital fitting rooms a reality
AQ
02/21VODAFONE : Mango partner for high-tech fitting rooms
AQ
02/21VODAFONE : Richmond Foundation turns 25; new app to be created for people with m..
AQ
More news
Financials (€)
Sales 2018 46 258 M
EBIT 2018 4 695 M
Net income 2018 2 184 M
Debt 2018 31 011 M
Yield 2018 6,39%
P/E ratio 2018 24,96
P/E ratio 2019 20,83
EV / Sales 2018 1,99x
EV / Sales 2019 1,97x
Capitalization 61 247 M
Technical analysis trends VODAFONE GROUP PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
 
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 2,80 €
Spread / Average Target 22%
EPS Revisions
Managers
NameTitle
Vittorio Amedeo Colao Chief Executive Officer & Executive Director
Gerard Johannes Kleisterlee Chairman
Nicholas Jonathan Read Group Chief Financial Officer & Executive Director
Johan Wibergh Group Technology Officer
Samuel Esson Jonah Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
VODAFONE GROUP PLC75 124
AT&T-5.43%222 907
CHINA MOBILE LTD.-5.05%196 651
NTT DOCOMO INC0.06%97 972
SOFTBANK GROUP CORP-3.76%90 825
VODAFONE GROUP-13.87%75 124