One-off charges hit Telecom Italia profit

13 Nov 2017

Telecom Italia Group, which trades in Italy and Brazil under the TIM brand, has reported revenues of EUR4.91 billion (USD5.77 billion) for the third quarter to 30 September 2017, up 1.3% year-on-year. Domestic sales climbed 0.8% to EUR3.82 billion, and Brazilian operations saw a 3.0% increase to EUR1.06 billion. Non-recurring charges totalling EUR127 million for litigation, regulatory and severance payments led to a 2.5% drop in EBITDA to EUR2.10 billion, however, while net profit fell 5.7% y-o-y to EUR476 million.

In operational terms, wireline accesses in Italy were down 2.0% to 11.14 million, though the number of retail and wholesale fixed broadband connections climbed 9.2% to 9.87 million and mobile subscriptions were up 2.5% y-o-y at 30.29 million. The Brazilian mobile user base fell 6.1% to 59.39 million. The group has once again denied speculation that it is looking to offload TIM Brasil, with the unit still seen as a core strategic asset according to company CEO Amos Genish.