Yazılar

Deutsche Telekom Beats Q1 Profit Forecast, Raises 2025 Outlook

/in /tarafından

Deutsche Telekom reported a stronger-than-expected performance in the first quarter of 2025, with its core profit (EBITDA AL) rising to €11.3 billion, slightly above the €11.1 billion expected by analysts. The results were boosted in part by a stronger U.S. dollar and solid contributions from its American unit, T-Mobile US.

The German telecom giant also slightly raised its full-year 2025 guidance, now projecting:

  • Core profit of approximately €45 billion (up from €44.9 billion)

  • Free cash flow after leases of €20 billion (previously €19.9 billion)

CEO Tim Höttges emphasized the group’s resilience amid economic challenges, noting that free cash flow for Q1 jumped 52.4% year-on-year, beating expectations by over €1 billion.

Highlights by Region:

  • United States: Continued strength from T-Mobile US, which recently raised its own profit forecast despite lagging in wireless subscriber growth.

  • Germany: Faced pressure, losing 7,000 broadband customers amid intense competition in a slowing broadband market. Analysts suggest platforms like Check24 may be aiding competitors like Vodafone.

  • Europe (excluding Germany): Performed well, with an organic revenue increase of 3.7%, supporting the company’s overall growth momentum.

Despite the positive results, Deutsche Telekom shares were down 0.2% at 07:20 GMT. However, they remain up about 9% year-to-date, reflecting continued investor confidence in the group’s long-term strategy and international diversification.

Tencent Says AI Chip Stockpiles Shield It from U.S. Curbs as Q1 Revenue Beats Forecasts

/in /tarafından

Tencent Holdings reported a strong 13% year-on-year revenue increase in the first quarter of 2024, reaching 180 billion yuan ($24.97 billion) and beating analysts’ expectations. The gains were largely fueled by growth in domestic and international gaming, AI-powered advertising, and financial technology services.

Despite ongoing U.S. restrictions on advanced chip exports, Tencent President Martin Lau downplayed the impact, stating that the company had previously stockpiled AI chips, enabling it to maintain momentum in its artificial intelligence development plans.

“The good thing is that we have a strong stockpile of chips… useful for executing our AI strategy,” Lau said during the earnings call.

While Nvidia’s H20 chip and other high-end processors have been barred from sale to Chinese firms under U.S. export restrictions, Tencent noted that alternative chips are available domestically, and its software advancements would help optimize chip usage.

Key Financial Highlights (Q1 2024):

  • Revenue: 180 billion yuan (vs. 174.6B expected, LSEG)

  • Net profit: 47.8 billion yuan (below 52.2B analyst estimate)

  • Domestic gaming revenue: Up 24% to 42.9B yuan

  • International gaming revenue: Up 23% to 16.6B yuan

  • Marketing services revenue: Up 22% to 17.7B yuan

  • FinTech & Business Services revenue: Up 16% to 27.6B yuan

AI and Strategic Investments

Tencent reaffirmed its commitment to AI development, planning to allocate a low double-digit percentage of 2025 revenue to capital expenditure, primarily targeting AI infrastructure. The company continues to evolve its proprietary large language model Hunyuan, and recently released a public-facing version named T1.

Tencent has also emerged as a collaborative leader among Chinese tech giants, integrating AI models from DeepSeek, an emerging firm known for developing competitive, cost-efficient alternatives to Western AI systems.

Broader Implications

The company’s performance illustrates Tencent’s resilience in the face of geopolitical tech tensions, while demonstrating the commercial viability of China’s AI ecosystem—even under hardware constraints. Its diverse revenue base, spanning gaming, advertising, and financial services, is increasingly supported by AI innovation, keeping Tencent at the forefront of China’s digital economy.

China’s SMIC Reports Strong Q1 Profit Surge but Warns of Cloudy Outlook Amid Tariffs and Yield Risks

/in /tarafından

Semiconductor Manufacturing International Corp (SMIC) posted a strong financial performance in the first quarter, with profit surging 162% to $188 million and revenue rising 28% year-over-year, driven partly by rush orders from U.S. clients seeking to preempt newly imposed tariffs. However, despite the gains, the results missed analyst expectations, and SMIC’s Hong Kong-listed shares dropped 6.8% following a cautious Q2 forecast.

SMIC, China’s largest chip foundry, said it expects revenue in the second quarter to decline by as much as 6%, citing potential challenges from lower production yields as the company integrates new manufacturing equipment.

Key Financials (Q1 2025):

  • Profit attributable to shareholders: $188 million (vs. $222.4M LSEG estimate)

  • Year-over-year profit growth: +162%

  • Revenue growth: +28%

  • U.S. customer contribution: 12.6% of revenue (up from 8.9% in Q4 2024)

Tariff Impact and Industry Risks:
Co-CEO Zhao Haijun acknowledged the escalating U.S.-China trade tensions, noting that although the current impact is limited—thanks to tariff exemptions and a diversified supply chain—uncertainty looms for the second half of the year.

“If customers cut back purchases due to price increases, the sector could face a hard landing,” Zhao warned.

The company remains largely focused on legacy chips for consumer electronics and home appliances, while advanced chips, such as those powering Huawei smartphones, make up a very small portion of its business. SMIC has not confirmed any production ties to Huawei.

Broader Policy Context:

  • The Trump administration in April approved tariff exclusions on selected Chinese electronics including smartphones, computers, and memory chips, partially easing import pressures for U.S. firms.

  • Meanwhile, Chinese authorities have granted exemptions on some semiconductor imports and are in active talks with the domestic chip sector to mitigate the trade war’s impact.

Despite its strong Q1, SMIC’s outlook reflects the fragility of the global semiconductor supply chain in a climate of geopolitical tension, policy shifts, and technological transition—especially as it scales new equipment and process nodes.