Telecom Italia’s Q3 earnings were hit by litigation, regulation, restructuring and settlement costs, as net profit fell more than 8 per cent year on year.
For the three months to the end of September, the company posted a net profit of €437 million, compared to €477 in the same period of 2016 – attributing the decline to non-recurring items.
In the quarter it provisioned €127 million for “specific litigation and regulatory procedures, plus severance items”.
EU roaming costs also began to bite, with the company reporting a decrease of €18 million in its domestic revenue year on year directly related to the new regulation.
Despite the decline in the company’s bottom line, the firm talked-up underlying trends across its markets and products.
Specifically, the firm reported continued growth in its Brazil unit. Its net profit was up 1.5 per cent to BRL279 million (€73.5 million) during the quarter.
Throughout 2017, TIM Brasil’s results have been boosted by positive exchange rate movements. The unit now contributes around 20 per cent of the company’s total revenue.
Its largest shareholder Vivendi is currently in the midst of legal action with regulators over the level of power it has over Telecom Italia and its other media interests.