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Deutsche Telekom AG DTEGY

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Deutsche Telekom Keeps Delivering on Both Sides of Atlantic; Maintaining FVE

Javier Correonero Equity Analyst

Analyst Note

| Javier Correonero |

No-moat Deutsche Telekom reported strong first-quarter results and slightly raised its 2021 guidance for the European business, where it now expects EBITDA (after leases) of around EUR 14.4 billion, compared with EUR 14.3 billion before, and free cash flow of around EUR 3.6 billion, compared with EUR 3.5 billion before. In the United States, T-Mobile keeps delivering and already announced last week $0.1 billion in additional synergies from the Sprint deal, bringing total synergies to $2.8 billion-$3.1 billion in 2021. We are maintaining our fair value estimates of EUR 17 per share and $20 per ADR.

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Company Profile

Business Description

Deutsche Telekom is Germany's incumbent telephone company and offers integrated telecommunication services, fixed and mobile, in several countries. Its U.S. business, T-Mobile, is among the largest wireless phone companies in the country, having recently acquired the fourth mobile provider, Sprint. Apart from Germany and U.S., the company operates in nine European countries. The firm's strategy has been to increase its scale (Sprint acquisition), improve operations through digitalization, and invest in its networks.

Contact
Friedrich-Ebert-Allee 140
Bonn, 53113, Germany
T +49 22818188880
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 224,385

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