Telecom Italia upped its guidance for revenue and core earnings for the 2022 to 2023 period, which it expects will be accelerated following an agreement with streaming service Dazn to boost its content offering.
The updated guidance forecast low to mid single-digit growth for organic service revenue in 2022 to 2023, compared with its previous low single-digit prediction. EBITDA was also revised at mid single-digit growth, compared with low to mid single-digit.
In a market update, the operator said the latest guidance was based on progress with its Beyond Connectivity plan, following agreements with content providers Dazn and Mediaset to distribute Serie A, Italy’s top-flight football division and the UEFA Champions League to TIM Vision, “the richest content platform on the Italian market”.
A cash generation target of €4 billion was also confirmed over the period, while it is targeting a net debt EBITDA ratio of 2.6-times to 2023. The company’s dividend distribution policy stands at €1 for ordinary shares and €2.75 for saving shares, while in the shorter term it is targeting reducing mobile and fixed churn at domestic level.
The company said in May it was confident of hitting its 2021 targets, also highlighting the Beyond Connectivity strategy to drive digital services, as well as agreements made in consumer and business.
Telecom Italia added the expected benefits from an Italian government National Recovery and Resilience plan and from the joint acquisition of Oi’s mobile assets in Brazil were not yet incorporated in the plan, while it will press ahead with plans to “relaunch” its domestic business and open up a new phase of “sustainable growth” linked to adjacent markets beyond connectivity.Subscribe to our daily newsletter Back