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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
Telecom Italia’s (TIM) core profit decreased 11.2% in the third quarter compared to the same period a year earlier as declining domestic revenues exceeded cost savings and the contribution from TIM’s Brazilian arm. The largest phone operator in Italy announced on Wednesday that its EBITDA-AL (earnings after interest, tax, depreciation, amortisation and lease) for the period of July to September came to 1.31 billion euros. This is lower than the 1.48 billion euros reported a year ago.
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More Info on the Profit Declines
Revenue decreased by 5.3% to 2.92 billion euros, which was also in line with predictions in Italy, where the former phone monopoly generates the majority of its revenue. TIM predicted that its EBITDA-AL would decrease by a low-teens percentage rate for the year while reiterating its guidance.
TIM announced that it was abandoning intentions to benefit from some tax provisions on goodwill in favour of using money to expand its company. As a result, it deferred tax assets worth a net of 1.96 billion euros. At the end of September, adjusted net debt was 25.5 billion euros, an increase of 15% from the previous year.
Debt-ridden TIM is proposing a makeover focused on the division of its activities into various entities in an effort to reduce debt after years of being under pressure in its extremely competitive domestic market. A procedure to sell a small portion of TIM’s enterprise services arm, which includes connectivity services for large corporate clients as well as cloud, Internet of Things, and cybersecurity businesses, is anticipated to be launched as part of these efforts.
