Telecom Italia reports sharp decline in profit
Telecom Italia has reported first-half net income fell to €29 million from €543 million in the same period last year.
The operator said profit would have reached €650 million if not for one-off charges in restructuring, legal settlements and financial transactions.
Telecom Italia’s revenues fell 4.3% from a year earlier to €10.097 billion, with a 2.1% decline in Italy and a 10.7% decrease in Brazil. It reported EBITDA fell from €4.345 billion to €3.633 billion a year ago.
Operating cash flow declined to €701 million from €1.044 billion, due to the cost of renewing the GSM licence in Italy and investments in services.
The operator said it expects a gradual improvement in results this year in Italy and Brazil as it seeks to increase investment in technology and infrastructure to increase revenues, including a €10 billion three-year plan in Italy.
The company is reportedly considering settling antitrust disputes with competitors such as Vodafone, Swisscom and Tiscali to stop damage claims for approximately €4 billion.