VOX - Deutsche Telekom: Within Our Fair Value Estimate

• Deutsche Telekom reported 6.2% (Y/Y) revenue growth in 1Q22, primarily supported by the business in the United States, which remains the company's growth engine.
• 1Q22 net profit ballooned to €3.9 billion thanks to gain from deconsolidation of T-Mobile Netherlands and 50% of its stake in GlasfaserPlus.
• Despite the competition from other players and altnets, we believe that Deutsche Telekom will still be able to capture a sizeable market share in the broadband fiber business.
• The share has gone up by 9% since our publication last February. We estimate Deutsche Telekom's fair value at US$20 per share (3-year +1STD EV/EBITDA), indicating that the share is within its fair value.

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