Nature abhors a vacuum -- and Wall Street feels pretty much the same way about uncertainty. That's something Deutsche Telekom
But you know what? That's fine with me. Uncertainty can certainly lead to value, and I think that's the case here. No, Deutsche Telekom is not in perfect shape. And yes, it'll have to spend cash on new gear. But I think the market has already more than accounted for all of that.
By the same token, let's not confuse this with a hard-charging growth story. Revenue was up just about 4% this quarter, as mobile contributed more than12% revenue growth. Broadband/fixed was down more than 6%, and business fell more than 3%. The U.S. contributed a huge majority of the growth, which may gall Euro-patriots.
Operationally, the picture was also mixed. Adjusted profits were down a bit, while adjusted EBITDA was up a little less than 3%. Here, too, it's all about mobile -- wireless EBITDA was up 8%, while broadband/fixed dropped almost 7%.
The company faces competition at home and a seemingly relentless shift from wirelines to wireless. What's more, DT joined Vodafone
But DT isn't helpless, either. T-Mobile is growing quite nicely, and the company has the financial wherewithal to pay for the new equipment. What's more, new ventures like IPTV (partnered with Microsoft
If I didn't already have a fair-sized chunk of my portfolio in international telecom, I'd be seriously considering these shares right now. Heck, I'm still kind of considering them. And while next-door neighbor France Telecom
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).