TI 1Q13 revenues drop 8.1%; board confirms status regarding 3 tie-up, wireline spin-off

9 May 2013

Telecom Italia (TI) has reported consolidated revenues of EUR6.796 billion (USD8.917 billion) for the three months ended 31 March 2013, down 8.1% from the EUR7.392 billion booked in 1Q12. Of the total, EUR4.024 billion was derived from TI’s domestic interests, down 10.1% year-on-year. Revenues generated by the group’s Brazilian asset TIM Participacoes (TIM Brasil) decreased 7.4% to EUR1.786 billion, while Telecom Argentina weighed in with turnover of EUR917 million, an improvement of 1.8% on an annualised basis. Meanwhile, EBITDA for Q1 2013 was EUR2.672 billion, down 10.1% y-o-y, with TI posting net income of EUR364 million for the quarter, compared to EUR605 million in the year-ago period. CAPEX amounted to EUR878 million, down EUR76 million compared with 1Q12.

With reference to the possible merger with 3 Italia, TI’s board of directors met yesterday to discuss the issue, and an in-depth analysis into the ‘concrete feasibility’ of a combination is said to be ongoing. Meanwhile, a decision regarding TI’s concurrent network spin-off project is expected by 23 May.