Report
Allan C. Nichols
EUR 101.80 For Business Accounts Only

U.S. operations continue to drive Deutsche Telekom's results.

Deutsche Telekom reported solid second-quarter results, but we are maintaining our fair value estimate and no-moat rating. We believe the shares are slightly undervalued. The firm reported revenue growth of 6% year over year versus our full-year projection of 3.2%. The main growth region continues to be the U.S. where revenue increased 9.7% as it added another 1.3 million customers in the quarter, making 17 quarters in a row of adding over 1 million subscribers.
However, this time revenue growth...
Underlying
Deutsche Telekom AG

Deutsche Telekom is engaged in the telecommunications services and information technology sectors. Co. operates as an integrated telecommunications provider. It is organized into four operating segments: Germany, Europe, and the United States; and Systems Solutions, as well as Group Headquarters and Shared Services. Co. provides fixed-network lines, broadband lines and mobile communications. Co. also provides customized Information and Communication Technology (ICT) solutions for corporate customers under the T-Systems brand. The Group Headquarters and Shared Services segment comprises cross-segment management functions, real estate services, and mobility solutions, among others.

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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