UBS Group AG (SIX: UBSG) is set to underline the advantages of its Credit Suisse (SIX: CSGN) acquisition in this week’s quarterly results, focusing on talent retention and the swift resolution of past issues at Credit Suisse. The Swiss multinational investment bank could see benefits from trading activities favoring equities, as well as underlying wealth flow and deposits.
Meanwhile, Deutsche Telekom AG (ETR: DTEGn) and Telefonica (NYSE: TEF) SA are centering their attention on shareholder returns and cash flow amid their 5G expansion in Europe. Both telecommunications giants are urging streaming services to share the increasing internet infrastructure costs. Deutsche Telekom (OTC: DTEGY) has laid out plans for a 10% dividend increase and a €2 billion share buyback in 2024, moves that have contributed to this year’s 15% stock gains. The company’s full-year free-cash-flow consensus of €16 billion shows potential for modest upside due to strong performance, despite expectations that adjusted Ebitda after leases slipped last quarter.
Telefonica SA’s medium-term free cash flow target has become critical following its loss of a wholesale contract with 1&1 AG. This development comes as the Spanish government considers taking a stake in Telefonica to protect against foreign takeovers, coinciding with the company’s earnings report and Capital Markets Day.
In other corporate news, Ryanair (LON: 0RYA) announced its first-ever dividend of €400 million, following a 59% profit increase, despite facing higher fuel costs and delivery delays. Airbus SE (OTC: EADSY) is grappling with supply chain issues, while Safaricom Plc’s new Ethiopia operation could boost sales but also presents increased risk. ArcelorMittal’s Ebitda is expected to slide due to lower metal spreads.
Cellnex Telecom SA is seeking an investment-grade rating after selling 49% of its Nordic business, potentially leading to a rating change in 2024. Vestas Wind Systems A/S reported a significant increase in order intake, marking another noteworthy development in the corporate earnings landscape.
