Telecom Italia recorded a quarterly revenue rise for the first time since 2018 during Q2, albeit a small one, as it reiterated a four-point plan to ensure future growth.
In an earnings statement, the company reported a 1 per cent year-on-year revenue rise to €3.8 billion, following increases in service revenue in Italy and Brazil, up 1.7 per cent to €3.5 billion.
The revenue rise was the first for the company since Q3 2018, following a period of losses which included a Covid-19 (coronavirus) impacted 2020. It did not provide a net income figure for the recent quarter, but recorded EBITDA of €1.6 billion, up from €1.2 billion.
Total mobile lines fell marginally from 30.5 million to 30.3 million, though domestic mobile churn of 3.7 per cent was its lowest level in 14 years.
Telecom Italia was also able to reduce its net financial debt by €3.9 billion to €21 billion, while capex for the first half of 2021 was up €1.8 billion, from €1.3 billion, related to investment in fibre networks and payment for licences in Italy.
Four growth drivers
Fixed and fibre investment is one part of the company’s four-point action plan to ensure future success.
It said Italy’s fixed market was back to growth in Q2, with its fibre lines increased by 231,000 in the quarter alone.
The company also talked up a recent streaming deal with Dazn, which helps the operator become “the home of football” and led to it lifting its outlook, in addition to its “beyond connectivity” plan to ramp digital services and target opportunities in IoT and cybersecurity.
Lastly, it is looking to the EU’s Italy recovery and resilience plan, tapping into a €25 billion fund.Subscribe to our daily newsletter Back