Telecom Italia (TI), one of Europe’s largest telecoms firms, has reported its results at 30 September 2007. Net profit in the three months to the end of September was EUR750 million (USD1.05 billion), down 18% year-on-year, but still beating an average estimate of EUR701 million in a poll of 13 analysts by news service Reuters. Net profit for the first nine months of 2007 fell 6.6% compared to the same period in 2006, to EUR2.2 billion, as revenues declined 0.7% to EUR23 billion. TI’s profit margins are falling as it faces tougher competition in Italy’s fixed line and broadband markets in particular.
The Italian incumbent last month came under the control of a consortium led by Spain’s Telefonica, with banks Intesa Sanpaolo and Mediobanca, insurer Generali and the Sintonia holding company. The cabal formed a new holding company called Telco, which will own 23.6% of TI