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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMUNICATIONS
- Due to report Q1 earnings on Thursday; company-provided consensus is looking for revenue +0.6% YoY, EBITDAal +2.9% YoY (vs. FY guidance of +6%), Cash CapEx -8.2% YoY and FCFal +8.4% (vs. FY guidance of +16%).
- T-Mobile (over half of group revenue) earnings back in April were mostly in line with consensus though they raised EBITDA and FCF guidance midpoints by USD 50mn (which could feed through to a slight upgrade from DT) and much attention was paid to planned price increases which were combined with a higher postpaid additions target despite risks of slower subscriber growth. They also announced USD ~1bn stake in a 50:50 Fibre JV with EQT Infrastructure, which will be used to acquire Lumos as a means of boosting fibre growth.
- Not likely to be a large spread impact from earnings given tight levels and stable outlook from Moody’s and S&P though we note that leverage is sitting close to the S&P upside threshold. Moody’s and S&P thresholds are given at 2.5x/3x and 3x/3.5x respectively vs. DT’s 2.25-2.75x reported target (translating to ~2.5-3x after rating agency adjustments). Company-provided consensus implies a slight decrease in reported leverage from 2.8x to 2.7x; back into the target range and slightly inside the DT upside threshold (not expected until end-2024).
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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