Report
Allan C. Nichols

Telefonica Deutschland Reports Roughly In-Line 1Q Results; Shares Undervalued

Telefonica Deutschland reported first-quarter results that are roughly in line with our expectations, and we anticipate maintaining our EUR 4.50 per share fair value estimate. Our no-moat rating remains intact, and we believe the shares are undervalued. That said, we like its parent company, Telefonica, even more. The firm’s reported revenue declined 0.2% year over year versus our full-year projection of a drop of 0.5%.
Telefonica Deutschland is pushing its postpaid wireless business, which led...
Underlying
Telefonica Deutschland Holding AG

Telefonica Deutschland Holding is a telecommunication company. Co. offers its consumer retail and business customers postpaid and prepaid wireless communications products, along with wireless data services using Global Packet Radio Service, Universal Mobile Telecommunications System and Long Term Evolution technology as well as Digital Subscriber Line wireline telephony and high-speed internet services. Co. markets its products and its wireless and wireline communications products as well as services via the core brand O2. Co.'s secondary brands include the brands Fonic and netzclub. Co. also markets high-speed DSL internet access and wireline telephony.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Allan C. Nichols

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