Telecom Italia 1Q15 profit drops 64% to EUR80m

8 May 2015

Telecom Italia (TI) has reported revenue of EUR5.1 billion (USD1.7 billion) for the three months ending 31 March 2015, down 2.6% year-on-year. EBITDA for the same period dropped 7.7% to reach EUR2.0 billion, down from EUR2.2 billion, while net profit totalled EUR80 million – against 1Q14 profits of EUR222 million – negatively impacted by bond buyback transactions and the valuation dynamics of a mandatory three-year convertible bond issued in November 2013; without this, TI would have generated profits of EUR300 million. CAPEX for the group reached EUR964 million, up from the EUR684 million recorded in the same three months a year earlier. TI states that the highest investments went into its domestic and Brazilian units, in line with industrial plan guidelines. Under the investments, TI extended its Italian fibre-optic network to cover 32% of the population, representing around eight million homes, while expanding 4G services to reach 80% population coverage.