UK Altnet Update: Talk of demise might be premature

News about the difficulties facing the UK altnet sector are starting to become more widely reported, but as ever in any industry, there are winners and losers and often the scale players can win – even in the altnet sector.

UK Telcos Impact from higher employers' taxation in upcoming Budget

Over the weekend, it has been widely reported that the upcoming Budget this Wednesday will include a 2pp rise for employer national insurance tax. In this brief note, we run through the financial implications of this for the UK telecoms companies (BT, VMO2, TalkTalk and Vodafone) and who is most exposed.

Telefonica (Neutral, €4.5, +7%) Q3 24 – Revenue, EBITDA and FCF beat

Telefonica’s Q3 results are solid, being marginally ahead of consensus across the board. In particular, strong KPIs in Spain and high organic growth in Brazil stands out, and with all guidance reiterated, we believe there could be some upside to consensus estimates.

ADYEN US (BUY, TP: EUR1,700, +28%) Adyen - Q3 and a volatile day; call feedback / our take

After a rollercoaster day, the stock seems to have landed in a sensible place: small miss, small down. We thought the earnings call was solid, as good as we were likely to get, management sounding confident on accelerating growth into FY 25.

Arm 2FQ25: industrial recovery pushed out. Overall momentum strong. Maintain Neutral; $115.