Announcement • Mar 12
Telefónica Deutschland Holding AG(XTRA:O2D) dropped from FTSE All-World Index (USD) Telefónica Deutschland Holding AG(XTRA:O2D) dropped from FTSE All-World Index (USD) Announcement • Mar 07
Telefónica Local Services GmbH has committed to launch a public delisting acquisition offer to acquire additional 5.88% stake in Telefónica Deutschland Holding AG (XTRA:O2D) for €410 million. Telefónica Local Services GmbH has committed to launch a public delisting acquisition offer to acquire additional 5.88% stake in Telefónica Deutschland Holding AG (XTRA:O2D) for €410 million on March 7, 2024. The offer per share price is €2.35. Considering all circumstances, Telefónica Deutschland's Management Board and Supervisory Board have concluded that the signing of the delisting agreement and the delisting are in the company's best interest. This decision is particularly based on the Management Board’s and the Supervisory Board’s view that the listing has lost its relevance for the Company and, therefore, the delisting is favourable with regards to strategic and financial considerations. Telefónica Local Services GmbH has committed to launch a public delisting acquisition offer to acquire additional 5.88% stake in Telefónica Deutschland Holding AG (XTRA:O2D) Reported Earnings • Mar 04
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: €0.092 (up from €0.078 in FY 2022). Revenue: €8.77b (up 4.7% from FY 2022). Net income: €273.0m (up 18% from FY 2022). Profit margin: 3.1% (up from 2.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 19%. Revenue is expected to decline by 2.3% p.a. on average during the next 3 years, while revenues in the Telecom industry in Germany are expected to grow by 1.6%. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has remained flat, which means it is well ahead of earnings. New Risk • Mar 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 6.6% per year for the foreseeable future. Minor Risks High level of debt (85% net debt to equity). Dividend is not well covered by earnings (195% payout ratio). Declared Dividend • Feb 23
Dividend of €0.18 announced Dividend of €0.18 is the same as last year. Ex-date: 16th May 2024 Payment date: 20th May 2024 Dividend yield will be 7.5%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is not covered by earnings (195% earnings payout ratio). However, it is well covered by cash flows (47% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 116% to bring the payout ratio under control. However, EPS is expected to decline by 2.0% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Jan 25
Telefónica Deutschland Holding AG(XTRA:O2D) dropped from S&P Global BMI Index Telefónica Deutschland Holding AG(XTRA:O2D) dropped from S&P Global BMI Index New Risk • Nov 10
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 85% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. Minor Risks High level of debt (85% net debt to equity). Dividend is not well covered by earnings (195% payout ratio). Reported Earnings • Nov 09
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: €0.014 (up from €0.013 in 3Q 2022). Revenue: €2.18b (up 2.4% from 3Q 2022). Net income: €41.0m (up 5.1% from 3Q 2022). Profit margin: 1.9% (up from 1.8% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is expected to decline by 1.3% p.a. on average during the next 3 years, while revenues in the Telecom industry in Germany are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Nov 08
Telefonica to Launch EUR 1.97 Billion Bid to Fully Acquire German Unit Spanish telecoms giant Telefonica SA (BME:TEF) said it has decided to launch an offer to acquire the 28.19% stake in its German unit it still does not own for up to EUR 1.97 billion (USD 2.12 billion). The Spanish company, which holds about 71.81% in Telefónica Deutschland Holding AG (ETR:O2D), will propose EUR 2.35 apiece for the remaining up to 838.45 million shares. The bid represents a premium of about 37.6% over the closing price on November 6 as well as a premium of 36.3% over the preceding three-month average share price. The offer is in line with Telefonica’s strategy to focus on its core geographies, including Spain, Brazil, Germany and the UK. The move will also help the Spanish giant streamline its organisation. The partial bid will not be subject to a minimum acceptance threshold. It is expected to begin in December 2023 and run until the middle of January. The offer highlights Telefonica’s commitment to the German market, “representing one of the most attractive and stable telecom markets in Europe”, the Spanish firm said. New Risk • Nov 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings are forecast to decline by an average of 8.6% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (195% payout ratio). Profit margins are more than 30% lower than last year (2.9% net profit margin). Buying Opportunity • Oct 25
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 35%. The fair value is estimated to be €2.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.5% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 0.7% per annum. Earnings is also forecast to decline by 7.2% per annum over the same time period. New Risk • Sep 04
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (195% payout ratio). Profit margins are more than 30% lower than last year (2.9% net profit margin). Price Target Changed • Aug 17
Price target decreased by 8.1% to €2.16 Down from €2.35, the current price target is an average from 19 analysts. New target price is 27% above last closing price of €1.71. Stock is down 35% over the past year. The company is forecast to post earnings per share of €0.068 for next year compared to €0.078 last year. New Risk • Aug 14
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.9% Last year net profit margin: 4.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (195% payout ratio). Profit margins are more than 30% lower than last year (2.9% net profit margin). Reported Earnings • Aug 13
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: €0.021 (up from €0.013 in 2Q 2022). Revenue: €2.13b (up 4.2% from 2Q 2022). Net income: €53.0m (up 33% from 2Q 2022). Profit margin: 2.5% (up from 2.0% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 104%. Earnings per share (EPS) also surpassed analyst estimates by 6.7%. Revenue is forecast to stay flat during the next 3 years compared to a 2.7% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Buying Opportunity • Aug 03
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 41%. The fair value is estimated to be €2.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.5% per annum. Earnings is also forecast to grow by 20% per annum over the same time period. Price Target Changed • Aug 03
Price target decreased by 9.9% to €2.48 Down from €2.76, the current price target is an average from 19 analysts. New target price is 22% above last closing price of €2.04. Stock is down 20% over the past year. The company is forecast to post earnings per share of €0.073 for next year compared to €0.078 last year. Announcement • Jul 27
Telefónica Deutschland Holding AG Narrows Revenue Guidance for the Year 2023 Telefónica Deutschland Holding AG narrowed revenue guidance for the year 2023. For the year, the company now expects revenue to be on the Upper-range of low single-digit percentage year-on-year growth against previous outlook of Low single-digit percentage year-on-year growth. Announcement • May 25
Telefónica Deutschland Holding AG to Report First Half, 2023 Final Results on Aug 10, 2023 Telefónica Deutschland Holding AG announced that they will report first half, 2023 final results on Aug 10, 2023 Announcement • May 18
Telefónica Deutschland Holding AG Approves Dividend for the Financial Year 2022 Annual General Meeting of Telefónica Deutschland resolves dividend of EUR 0.18 per share for the financial year 2022. After the company's Annual General Meetings had been held in a virtual format in the past 3 years due to COVID-19 restrictions, this year the company's Annual General Meeting was again held in physical presence. Upcoming Dividend • May 12
Upcoming dividend of €0.18 per share at 5.8% yield Eligible shareholders must have bought the stock before 19 May 2023. Payment date: 23 May 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 5.8%. Within top quartile of German dividend payers (4.6%). Higher than average of industry peers (3.4%). Reported Earnings • Mar 03
Full year 2022 earnings released: EPS: €0.08 (vs €0.071 in FY 2021) Full year 2022 results: EPS: €0.08 (up from €0.071 in FY 2021). Revenue: €8.38b (up 6.4% from FY 2021). Net income: €232.0m (up 10.0% from FY 2021). Profit margin: 2.8% (up from 2.7% in FY 2021). Revenue is forecast to stay flat during the next 3 years compared to a 1.9% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 01
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: €0.014 (up from €0.017 loss in 2Q 2021). Revenue: €2.04b (up 7.9% from 2Q 2021). Net income: €41.0m (up €85.0m from 2Q 2021). Profit margin: 2.0% (up from net loss in 2Q 2021). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 43%. Over the next year, revenue is forecast to stay flat compared to a 2.0% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 13
Upcoming dividend of €0.18 per share Eligible shareholders must have bought the stock before 20 May 2022. Payment date: 24 May 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 6.1%. Within top quartile of German dividend payers (4.2%). Higher than average of industry peers (3.5%). Reported Earnings • Feb 26
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: €0.071 (down from €0.11 in FY 2020). Revenue: €8.17b (up 6.9% from FY 2020). Net income: €211.0m (down 36% from FY 2020). Profit margin: 2.6% (down from 4.3% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.7%. Over the next year, revenue is expected to shrink by 3.3% compared to a 2.6% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 16
Third quarter 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2021 results: EPS: €0.076 (down from €0.13 in 3Q 2020). Revenue: €2.26b (up 19% from 3Q 2020). Net income: €227.0m (down 42% from 3Q 2020). Profit margin: 10.0% (down from 21% in 3Q 2020). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) also surpassed analyst estimates. Earnings per share (EPS) surpassed analyst estimates. Over the next year, revenue is forecast to grow 2.0%, compared to a 2.0% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 13
Second quarter 2021 earnings released: €0.017 loss per share (vs €0.006 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: €1.95b (up 5.6% from 2Q 2020). Net loss: €44.0m (loss widened 144% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 95% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 14
Upcoming dividend of €0.18 per share Eligible shareholders must have bought the stock before 21 May 2021. Payment date: 26 May 2021. Trailing yield: 7.1%. Within top quartile of German dividend payers (3.2%). Higher than average of industry peers (4.5%). Is New 90 Day High Low • Feb 26
New 90-day low: €2.21 The company is down 8.0% from its price of €2.41 on 27 November 2020. The German market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Telecom industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €14.09 per share. Reported Earnings • Feb 25
Full year 2020 earnings released: EPS €0.11 (vs €0.071 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: €8.07b (up 6.5% from FY 2019). Net income: €328.0m (up €540.0m from FY 2019). Profit margin: 4.1% (up from net loss in FY 2019). Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 25
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.6%. Earnings per share (EPS) missed analyst estimates by 3.2%. Over the next year, revenue is expected to shrink by 5.8% compared to a 7.1% growth forecast for the Telecom industry in Germany. Analyst Estimate Surprise Post Earnings • Nov 01
Third-quarter earnings released: Earnings beat expectations, revenue disappoints Third-quarter revenue missed analyst estimates by 0.3% at €1.87b. Earnings per share (EPS) exceeded analyst estimates by 266% at €0.13. Revenue is expected to shrink by 5.7% over the next year, compared to a 12% growth forecast for the Telecom industry in Germany. Reported Earnings • Nov 01
Third quarter earnings released Over the last 12 months the company has reported total profits of €296.0m, with earnings increasing by €582.2m from the prior year. Total revenue was €8.04b over the last 12 months, up 5.6% from the prior year. Is New 90 Day High Low • Sep 25
New 90-day low: €2.25 The company is down 15% from its price of €2.65 on 26 June 2020. The German market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Telecom industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €12.27 per share.