Analyst Commentary

While T-Systems grew in cloud, IoT and security in 3Q17, a sustained overall revenue growth will come with its new CEO

While revenue grew 2% year-to-year in 3Q17, driven by growth in digital, such as cloud and Internet of Things (IoT), telecommunications and security services, T-Systems’ high dependence on traditional IT services and lingering price pressures on deal extensions and new wins will continue to create performance challenges. T-Systems is suffering from diminishing value of its assets due to declining orders for the nine months in 2017 and subsequent non-cash impairment loss on goodwill of €1.2 billion. With a likely order decline in 4Q17, TBR expec...

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