Telecom Italia reports 14.8% decline in earnings

06 November 2015 |

Telecom Italia has reported a 14.8% decrease in core earnings for the first nine months of 2015, as a result of non-recurring charges and the declining Brazilian economy.

The operator’s EBITDA fell to 5.6 billion, in comparison to the same period last year. Sales amounted to14.9 billion, a 6.9% decrease in comparison to 2014.

Telecom Italia noted that its key market of Brazil has continued to worsen in a macro-economic context. The Brazilian market has been impacted by uncertainty around exchange rates, inflation and interest rates. 

Its domestic revenues declined 1.8% in reported terms and 2.2% in organic terms to €11.13 billion. However the operator reported it was an improvement compared with previous periods.

This recovery in performance was primarily attributable to an improvement in the competitive environment, which led to a gradual dynamic stabilisation of the customer base and ARPU on traditional services, in particular in the mobile segment, and an acceleration of development in connectivity services and content on broadband and ultra-broadband networks,” said the company.

Telecom Italia’s national wholesale segment recorded revenues of 1.33 million for the first nine months, a 2.6% decline, compared to the previous year. 

The company said the reduction was due to the migration from offers of traditional circuits towards more competitive services on generation IP/ethernet networks, as well as the reduction of revenues from mobile traffic on national roaming.

Telecom Italia Sparkle – the international wholesale arm of the operator – reported revenues of 971 million, what the company referred to as a “significant increase” of 7.3%, compared to the previous year. It attributed the growth to its phone, IP and data services.