Telecom Italia cuts growth target

Telecom Italia (TI) has cut its medium-term revenue growth target from 2% per year between 2009 and 2011, to 1% per year between 2010 and 2012. The telco also revealed that it plans to make greater savings in order to reduce its EUR34 billion (USD46 billion) debt pile; that it will keep its dividend unchanged despite a 27% decline in restated net income for 2009 to EUR1.6 billion; and that it has set aside EUR507 million for risks relating to its Sparkle unit following the launch of a money laundering probe into the company’s activities. CEO Franco Bernabe said the group’s objective was to ‘stabilise organic EBITDA for the third consecutive year in 2010 … thanks to the contribution from Brazil which recorded good progress in the first three months of the year’.