European telcos: mixed signals

Issues of disclosure, liquidity, high debt levels and low equity valuations have combined to make the telecoms sector as volatile in the first half of this year as it was last year. But will this continue throughout the second half of this year and more importantly what should investors look out for?

com-sarahmartin-gif
Sarah Martin
Lehman Brothers

Modestly overweight (underweight DT & FT)
The one thing that is certain about the telco sector is that it will remain volatile, with sentiment swinging 180 degrees in short order. Currently, sentiment is against the sector for the following reasons: firstly, generally poor Q1 results and earnings downgrades, particularly for wireless operations; next, sharply declining equity prices, resulting largely from the weakened earnings outlook; thirdly, contagion

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here