Vodafone's quarterly results and dividend cut set the TPSI European Telecoms Services lower last week. The index ended week 20 down 0.7 percent, against a 1.9 percent gain for the EuroStoxx 50 index, according Telecompaper. Iridium, without significant news, and 1&1 Drillisch also ended the week down sharply. The winners included mobilezone and Rostelecom.
German shares down
Vodafone (-11% in week 20) reported its Q4 results, but lowered its dividend to lower its leverage and sold its New Zealand unit. The African holding Vodacom also reported.
In Germany, objections mounted against the merger with Liberty Global's (-4.1%) Unitymedia, this time from the country's commercial broadcasters. In other news from Germany, a trio of companies released their Q1 results: United Internet (-6.0%), its listed subsidiary 1&1 Drillisch (-12.2%), as well as business services provider QSC (-6.2%).
Swiss retailer mobilezone (+10%) decided to enter the German market through an acquisition. Spanish operator MasMovil made a similar move, considering buyng a company from KKR, to enter the Portuguese market.
Italy: sharing networks
In Italy the incumbent TIM (-0.9%) suggested that a merger with infrastructure operator Open Fiber (unlisted) would make sense, but hadn't yet contacted Open Fiber co-owner Enel.
TIM previously entered into a 5G network sharing deal with Vodafone Italy, a deal which was now crisicised by Iliad's (-0.7%) Italian unit. TIM responded by inviting Iliad Italia into the joint venture.
In yet another study it was concluded that the Italian 4G tariffs are now the cheapest in Europe. Vodafone Italia however remarked that it felt that the influence of Iliad's market entry, one year ago, was starting to ease. Still, more pricing adjustments came to the market, now from CK Hutchison's (-1.9%) 3 Italia (notably a price hike) and a promotion from Wind.
More earnings
Other companies reporting included:
Incumbent: Rostelecom (+10%)
Mobile operators: Sunrise (+4.3%), Play (+6.5%), Syn (-1.9%)
Convergent operators: Bouygues (+1.2%), Cyfrowy Polsat (-5.3%), Digi (-4.9%)
Satellite: Eutelsat (-2.8%)
Infrastructure: Inwit (+2.0%)