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Telecom Italia H1 sales continue lower, eyes Brazil options
2014-08-06 09:30:00| Telecompaper Headlines
(Telecompaper) Telecom Italia reported first-half revenues down 11.2 percent to EUR 10.55 billion, hurt by divestments and continued weakness in its home market. EBITDA dropped 7.6 percent to EUR 4.345 billion, while the margin improved to 41.2 percent from 39.5 a year ago. On an organic basis, excluding currency effects and changes in scope, revenues fell 6.5 percent and EBITDA was down 5.6 percent. The Italian operator's net result improved to EUR 543 million profit from a loss of EUR 1.407 billion a year ago when the company wrote down the value of some assets. Capex fell slightly to EUR 1.707 billion or 16.2 percent of revenue. Net debt was down by EUR 171 million in the second quarter to EUR 27.358 billion at the end of June. The company said results were in line with its mid-term outlook and the Italian market is expected to contract less this year than in 2013. Profitability will be under pressure in the near term from the ongoing shift to bundled plans, as well as competition and price pressure on the fixed market. Telecom Italia also acknowledged indirectly Telefonica's proposed bid for GVT in Brazil and said it continues to evaluate strategic options for its own activities in Brazil.
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Category:Telecommunications