Telecom sector M&A activity high in UK, Italy, and Spain, incumbents seeing revenue growth.

From Morningstar: 2025-06-26 07:22:00

M&A activity is high in the UK, Italy, and Spain, with a focus on broadband networks. CityFibre is considering a sale to Virgin Media O2. Telefonica is divesting Latin American operations rapidly. Orange and Bouygues face declining ARPU in France due to increased competition, potentially leading to lower mobile prices.

Large incumbents, excluding Telecom Italia, are seeing service revenue growth. Telefonica and Orange are losing market share but offsetting with price increases. Deutsche Telekom gains share in Germany, posing a threat to Vodafone. Proximus remains undervalued despite positive performance, while Liberty Global faces challenges due to its complex corporate structure. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 3% and the Dow Jones Industrial Average falling by 400 points. Investors are concerned about rising inflation and interest rates impacting corporate earnings.

2. The latest unemployment report shows a decrease in jobless claims, with 350,000 new claims filed last week. This marks a 20,000 decrease from the previous week and signals a positive trend in the labor market.

3. The Federal Reserve announced plans to increase interest rates by 0.25% in an effort to combat inflation. This decision comes as consumer prices continue to rise at a rapid pace, putting pressure on the central bank to take action.

4. A new study revealed that the average household debt in the United States has reached $145,000, with credit card debt accounting for a significant portion. Experts warn that high levels of debt could lead to financial instability for many Americans.

5. In international news, tensions are escalating between Russia and Ukraine as Russian troops continue to mass along the border. The United States and European allies have condemned Russia’s actions and are considering imposing sanctions in response.



Read more at Morningstar: Telecom Stocks: Scarce Opportunities Remain