Market report: Deutsche Telekom

The $DTE (-0,03%) remains a dominant player in the German telecommunications market, supported by strong financial results and ambitious projects. In 2024, the Group achieved strong revenue growth, particularly through fiber and mobile projects, and exceeded forecasts in several segments .

Current projects and developments

1.Fiber optic expansion:

- Deutsche Telekom plans to connect around 2.5 million new households to the fiber-optic network (FTTH) every year until 2027. The total number of households that can be connected is set to rise to 17.5 million, with a target take-up rate of 20% .

- A record 131,000 new fiber optic tariffs were already achieved in the third quarter of 2024 .

2.5G network and digitalization:

- The expansion of the 5G network is being systematically driven forward, with a target network coverage of 95% in Europe by 2027. The company is also investing in campus solutions and network slicing.

- Customer care processes and self-service offerings are increasingly being optimized using artificial intelligence to increase efficiency.

3.Business customers and B2B:

- Global business with business customers, particularly via the subsidiary T-Systems, is to be accelerated through cloud-based platforms and ICT solutions. Revenue growth in the billions is expected .

4.Sustainability and financial flexibility:

- In addition to record dividends (90 cents per share), Telekom is planning share buybacks worth up to 2 billion euros .

Competitive situation

Deutsche Telekom faces intense competition from other major providers such as $VOD (+0,12%) , $TEF (+0%) (O2) and regional players such as 1&1. While Vodafone and Telefónica are also investing in fiber projects and 5G, Deutsche Telekom stands out due to its dominant market position and global commitment.

Competitors:

-Vodafone: Strong focus on IoT and 5G technologies.

-Telefónica Germany (O2): Aggressive expansion of low-cost offers and regional partnerships.

-Freenet and 1&1: Increasing focus on innovative tariff models and attractive price points .

Prospects and possible new projects

Deutsche Telekom plans to further expand its digital offering, with a focus on payment services, AI-supported solutions for end customers and sustainable infrastructures. In addition, future investments in cloud-based services and partnerships could further increase revenue in the B2B area. Expansion in Europe remains a key area, while growth via T-Mobile US continues to be a key driver in the USA.

Overall, Deutsche Telekom is demonstrating a strong strategic focus on both sustainable infrastructure and digital innovation. It is expected to maintain and further expand its leading position in the German market.

https://www.telekom.com/de/medien/medieninformationen/detail/zwischenbericht-drittes-quartal-2024-1083042

https://www.mordorintelligence.com/de/industry-reports/germany-telecom-market

https://www.telekom.com/de/medien/medieninformationen/detail/deutsche-telekom-will-wachstum-beschleunigen-1080408

Summary Earnings, 12.11. 👇🏼

$VOD (+0,12%) | Vodafone Q2/H1 24 Earnings

Q2 Service Rev EU7.64B (est EU7.62B)

H1 Oper Profit EU2.38B (est EU2.41B)

Still Sees FY Adj Free Cash Flow At Least EU2.4B

FY25 Guidance Reiterated

$AZN (+0,12%) | AstraZeneca Q3 24 Earnings

Core EPS $2.08 (est $2.06)

Rev. $13.57B (est $13.08B)

Raises FY Core Eps View To High Teens Percentage Growth

To Invest $3.5B In R&D And Manufacturing In The US

Upgrades FY Guidance

$9434 (-1,97%) | SoftBank Q2/H1 Earnings 2024

Q2 SVF Profit 313.14B Yen (est 83.11B Yen)

Q2 Net Income 1.181 Yen (est 294.83B Yen)

Q2 Dividend 22.00 Yen

H1 Net Income 1,011 Yen

H1 Net Sales 3,471 Yen (est 3.42T Yen)

Still FY Dividend 44.00 Yen (est 44.00 Yen)

$BAYN (+0,15%) | Bayer Q3 24 Earnings

Sales EU9.97B (est EU10.15B)

Core EPS EUO.24 (est EU0.31)

Adj. EBITDA EU1.25B (est EU1.33B)

Sees FY Adj. EBITDA EU10.4B To EU10.7B (est EU10.35B)

Now Sees FY Pharma Outlook At Upper End Of Range

Bayer Confirms Sales Growth Outlook

$IFNNY (+0%) | Infineon Q4 24 Earnings

Rev, EU3.92B (est EU3.98B)

Total Segment Profit EU832M (est EU792.5M)

Infineon Sees Q1 Revenue About EU3.2B (est EU3.77B)

Sees Q1 Rev. About EU3.2B (est EU3.77B)

2025 Revenue Is Expected To 'Slightly' Decline

$BNR (+0%) | Brenntag Q3 24 Earnings:

- Oper EBITA EU281.1M (est EU295.8M)

- Still Sees FY Oper EBITA EU1.1B To EU1.2B

- Cites Challenging Geopolitical, Macroeconomic Operating Conditions

$VBK (+0%) | Verbio recorded an operating loss of 6.6 million euros in the first quarter of the financial year due to a weak biofuel market. Group CEO Claus Sauter expects significant increases in earnings in the second half of the year due to possible new legal regulations.

$JUN3 (-0,72%) | Jungheinrich faces a subdued business outlook due to the weak economy and expects sales and incoming orders to be at the lower end of the forecast ranges. In the third quarter, however, the company recorded a 6.5 per cent increase in incoming orders to 1.3 billion euros, while sales declined slightly.

$JEN (+0,04%) | Jenoptik increases its operating result (EBITDA) by 14.9% to 59.1 million euros in the third quarter and confirms its annual targets for 2024 despite an uncertain market environment. Revenue grows by 4.0% to 274.3 million euros, but falls short of expectations

$SIX2 (+0%) | Sixt is again lowering its profit forecast for the full year to a pre-tax profit of around EUR 340 million, while analysts had expected an average of EUR 352 million. Despite a ten percent increase in revenue in the third quarter, the negative impact of falling residual values is expected to remain high.

$SFQ (+0%) | SAF-Holland is lowering its sales expectations for 2024 from EUR 2 billion to EUR 1.95 billion, but is maintaining its target margin of around ten percent for adjusted EBIT. In the third quarter, the company recorded a decline in sales of over 20 percent and a 63 percent drop in net profit to EUR 9.3 million.

$UTDI (+0%) | United Internet reports a slight decline in EBITDA to EUR 978 million in the first nine months due to increased expenses for the 1&1 mobile network. Sales of the 1&1 mobile subsidiary rose by 2.5 percent, but EBITDA fell by nine percent to EUR 463 million, while the sales forecast was lowered.

$IOS (+0%) | Ionos increases sales in the first nine months by almost eight percent to over 1.1 billion euros and adjusted EBITDA by nine percent to 334.5 million euros. The company confirms its annual targets and is optimistic about the remaining months of the financial year.

$KWS (+0%) | KWS Saat increases net sales by 18 percent to 248.6 million euros in the first quarter and reduces its loss before taxes by 19.4 percent to 37.4 million euros. The company confirms its guidance for fiscal 2024/25 and records extraordinary income of EUR110 million from the sale of its South American corn and sorghum business.

A different perspective on "AI". I actually can't hear the term anymore - but it will stay with me whether I like it or not.

Beyond the beloved $NVDA (+0,67%) and others might take this approach:

Blackrock boss: AI's hunger for electricity offers investment opportunities

AI data centers will need more energy "than we could ever have imagined," says Larry Fink. The manager sees this as an opportunity for pension funds and insurance companies.

Data centers will probably be built where the power supply is cheaper.

Now, of course, we can look at the Reits for data centers or the utilities, for example $IBE. (-1,09%)

With a global presence of data centers, Iberdrola hopes to attract additional users for its core product: renewable energy. The company is currently one of the largest providers of renewable energy and has more than 40,000 customers worldwide. Iberdrola has also signed Power Purchase Agreements (PPAs) with the largest companies in the data center industry, from Amazon ($AMZN (-0,01%) ) to Meta ($META (-0,18%) to Vodafone $VOD (+0,12%) ).

https://www.techerati.com/news-hub/spanish-energy-company-iberdrola-seeks-data-centre-partner/

Iberdrola confirms new agreement with Amazon to procure 159 MW of renewable energy from East Anglia THREE, the second largest offshore wind farm in the world

https://www.iberdrola.com/press-room/news/detail/iberdrola-confirms-new-agreement-with-amazon-to-procure-159-mw-of-renewable-energy-from-east-anglia-three-worlds-second-largest-offshore-wind-farm

And this is exactly the path I am taking. I expect this to be a low-risk investment that nevertheless promises an attractive long-term return coupled with fine dividends and can still participate in the overall development in relation to the whole "AI circus". -> iberdrola will therefore continue to be finely built up. Boring but good for the blood pressure 😀👍

Was once in the $GGRP (+0,25%) but not at the moment. ETFs just change. That's why it's always good to see what companies there are that you might want to add to your portfolio separately and actively overweight if you like them.

Why am I writing all this crap?

It's my way of dealing with the stocks in my portfolio.

Or do you have a different opinion?

Other ideas?

I am currently considering investing in telecom companies and/or cloud providers:

Telekom:

$DTE (-0,03%) , $TMUS (+0,29%) , $VOD (+0,12%) , $VZ (+0,16%) or $T (-0,05%) ?

Cloud provider:

$GOOG (+0,04%) , $MSFT (+0,06%) or $AMZN (-0,01%) ?

What would you recommend?

continue

further increased

Hello,

I am slightly confused as I have never had anything like this before:

I hold $VOD (+0,12%) with scalable and consors,

last week I got a "letter" from scalable asking me to decide whether I want the dividends in EUR or GB....

i thought scalable only has EUR nothing else?! so in principle no matter what i choose, it will be paid out in EUR either way ... i don't understand the point of it, i haven't received anything from consors 🤔

What do you think about Vodafone currently, would you buy or not? $VOD (+0,12%)

Is this the beginning of a turnaround / tourn arround at $VOD (+0,12%) ?

https://www.finanzen.net/nachricht/aktien/erwartungen-uebertroffen-vodafone-aktie-gewinnt-vodafone-mit-umsatzsteigerung-ex-sap-finanzchef-kommt-12661188

At least it jumps up by a whopping 4% today after this, in my opinion, good news. In addition to a good dividend, there would be a good return to be earned here, provided that the company manages to steal customers away from the competition again in the near future.