Telecom Italia Q4 signals successful transformation - Mobile World Live

Telecom Italia Q4 signals successful transformation

24 FEB 2021

Telecom Italia argued its Q4 performance was an indicator that a two-year transformation effort was beginning to show results, while its net profit for the period surged on the back of a tax realignment.

In a statement, the operator said it had spent two years streamlining its organisational structure, optimising processes and undergoing a major repositioning of the business with the creation of new development opportunities, thanks to key strategic agreements.

It said the commercial strategy implemented since 2018 had led to a stabilisation of service revenue in the fixed-line segment during Q4 2020, while “the first signs of rationality in the mobile market were felt”.

Overall revenue amounted to €4.1 billion, down 2.1 per cent year-on-year, while service revenue dipped 1.2 per cent to €3.7 billion.

Domestic revenue hit €3.4 billion, down slightly from €3.6 billion, while the figure in Brazil fell 2 per cent to €725 million.

The main bright spot for the quarter was net profit of €6 billion, up from €64 million, mainly due to a domestic tax realignment.

Excluding this effect, net profit would have been €1.3 billion.

Net financial debt fell by €4.3 billion to €23.3 billion, while the number of mobile lines stood at 30.2 million, down slightly from 30.9 million.

The company confirmed a dividend of €0.01 per ordinary share for 2021.

Separately, the company’s board of directors also proposed current CEO Luigi Gubitosi stay in the role for another term.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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