Telecom Italia (TI) has reported consolidated revenues of EUR20.389 billion (USD27.471 billion) for the nine months ended 30 September 2013, down 7.6% from the EUR22.061 billion reported in 9M12. Of the total, EUR11.403 billion was derived from TI’s core domestic interests, down 10.2% year-on-year. Revenues generated by the group’s Brazilian interest TIM Participacoes (TIM Brasil) decreased 5.6% to EUR5.280 billion, while Telecom Argentina weighed in with revenues of EUR2.852 billion, an improvement of 1.7% on an annualised basis. EBITDA for 9M13 was EUR7.933 billion, down 10.5% on the corresponding period in 2012, while the company posted a consolidated net loss of EUR902 million for the first nine months of 2013.
In related news, the TI board of directors, chaired by Aldo Minucci, has approved a series of what it has termed ‘extraordinary transactions’ engineered to strengthen the company’s financial position and support its 2014-2016 three-year Industrial Plan. The Plan is intended to set out major objectives for the development of new infrastructure through requalified and increased investments, at a much faster rate than under the previous plan. Further, it is also designed to include various support measures to strengthen the financial position of the group, which will contribute approximately EUR4 billion worth of funding. These actions include the issuing of mandatory convertible bonds for a maximum of EUR1.3 billion, the disposal of TI’s stake in Telecom Argentina, the valuation of towers in Italy and Brazil, and the valuation of the TI Media multiplexes. Finally, the TI board has confirmed that it has received an offer for its direct and indirect stake in Telecom Argentina (See separate CommsUpdate story for full details). Commenting on the new Plan, CEO Marco Patuano commented: ‘We are firmly convinced that this is the best strategic and industrial choice to pursue a path of growth and development.’