Solid results from TI but net debt soars after TIM integration

28 Jul 2005

Italy’s former state-owned monopoly Telecom Italia (TI) has posted revenues of EUR14.7 billion (USD18.1 billion) for the first half of 2005, up 5.2% on the corresponding figure for last year. Although revenue from TI’s wireline business unit (EUR8.8 billion) continues to be greater than that of its wireless division (EUR6.2 billion), sales from the latter are actually growing five times as fast. The strong mobile growth is being driven by soaring UMTS handset sales – 400,000 in the last three months – in Italy, and burgeoning revenues and customer numbers in Brazil. TI’s mobile division, Telecom Italia Mobile, was reintegrated into TI at the end of June, a move which left net debt at a hefty EUR44.1 billion, up from EUR32.9 billion at the end of 2004, and at a similar level to that of debt-laden telcos France Télécom and Deutsche Telekom.