Overview
Morgan Stanley indicated that 60 % of European telecommunications companies have disclosed their second‑quarter earnings, showing mixed outcomes.
Revenue and EBITDA Performance
Revenue beat expectations for 56 % of the firms, met forecasts for 11 % and fell short for 33 %; however, only half of the companies achieved their EBITDA targets, with Telia and KPN the sole beaters. EBITDA growth decelerated to 1.3 % in Q2 from 3.6 % in Q1.
Stock Price Movements
During the reporting period, share prices moved as follows: Telia +1.29 %, Tele2 +1.28 %, Elisa +0.64 %, Deutsche Telekom +2.58 %, Vodafone +4.84 %, LBTYA +1.39 %, KPN +1.29 %, and T‑Mobile US ‑0.01 %.
Sector Trend
The European telecom sector rose 10 % year‑to‑date but lagged the broader European market by one percentage point and has shown weakness since June, partly due to satellite‑related concerns affecting both U.S. and European operators. Deutsche Telekom shares remained negative for the year, and uncertainty around tower assets persisted.
Regional Highlights
Nordic operators experienced a return to normal EBITDA growth after strong 2025 performance driven by cost reductions; however, Elisa and Telenor missed revenue estimates because of weak mobile service revenues and heightened competition. Liberty Global also missed revenue forecasts.
Guidance Updates
Half of the companies kept their existing guidance. Vodafone upgraded its EBITDAaL and free‑cash‑flow outlook, stating it expects results at the upper end of its revised ranges. Conversely, Elisa, Telenor and KPN trimmed guidance for service‑revenue and cash‑flow metrics.
Additional Notes
T‑Mobile US reported its Q2 results on 23 July, surpassing Morgan Stanley’s EBITDA forecast by 1.4 %. Deutsche Telekom is projected to improve revenue and EBITDA trends in Germany following a €3 per month broadband price increase implemented in early April.