Telecom Italia reveals earnings boost ahead of key AGM - Mobile World Live

Telecom Italia reveals earnings boost ahead of key AGM

04 MAY 2017

Telecom Italia revealed steady earnings growth in the opening quarter, ahead of a key AGM which could see largest shareholder Vivendi gain a majority and appoint its own CEO as chairman.

In its Q1 2017 earnings call, Telecom Italia CEO Flavio Cattaneo said the operator delivered a “solid quarter” in which EBITDA and revenue both increased over the same period of 2016.

EBITDA of €2 billion was up 16.2 per cent year-on-year, while revenue grew 8.5 per cent to €4.8 billion.

Telecom Italia does not reveal net profit figures in its quarterly updates, but stated its Q1 2017 revenue was its best since 2012.

The operator’s first quarter earnings were boosted by its Brazil business, which generated revenue growth of 32 per cent year-on-year and a 44 per cent increase in EBITDA, led by growing uptake of 4G.

Telecom Italia’s domestic business recorded 3 per cent revenue growth and an 11 per cent EBITDA increase compared to Q1 2016.

Discussing Telecom Italia’s current domestic outlook, Cattaneo said the company was: “Changing our mindset to one of an angry newcomer while availing ourselves of all the benefit of our scale.”

“We want to service our customers better than anyone else”.

Vivendi bid
Telecom Italia issued its earnings a day before shareholders vote on its new leadership team at its AGM.

The meeting will end recent intense speculation regarding Vivendi’s plans for Telecom Italia, which include reports the media company is seeking to shake up the operator’s board and install its own CEO, Arnaud de Puyfontaine, as chairman.

During April, Vivendi’s ambitions in Italy met opposition from both the country’s communications regulator and investor advisory company Institutional Shareholder Services.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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