Telecom Italia (TI) said it had seen a recovery in its domestic business “thanks to the constant improvement of both the fixed and mobile components”, although it is continuing to see its revenue and profitability pressured.

The company also detailed its strategic plan for 2015–2017, which includes investments of €10 billion in Italy and more than €4 billion in Brazil. It is also looking for domestic EBITDA stabilisation in 2016 and an improvement in 2017, alongside continuous EBITDA growth in Brazil.

TI’s revenue from Italy in Q4 decreased by 4.4 per cent, continuing a “constant improvement” throughout 2014 – from a 6.2 per cent decrease in Q3 and a 8.9 per cent decline in Q2.

The performance of its mobile services also saw a “marked recovery”, with a Q4 reduction of 5.7 per cent compared with a prior-year Q4 drop of 14.3 per cent. This unit benefitted from factors including the gradual stabilisation of the customer voice and average revenue per user on voice services, and growth in mobile internet.

At the end of the year, TI covered around 80 per cent of the population with LTE technology, with a 4G customer base of over 1.3 million. It also said its fibre network is available in 131 cities at the end of 2014, equal to 28 per cent of the population, with 231,000 customers.

Under the new strategic plan, it is looking to cover 75 per cent of the population with its fibre network and 95 per cent with 4G at the end of 2017. Some €900 million has been set aside for “mobile ultrabroadband” networks, with €2.9 billion assigned to “fixed ultrabroadband”.

The company said its strategy in its home market is based on “distinct positioning focused on the combined fixed-mobile offers”. This has been accompanied by a recently-announced rebranding.

TIM Brasil also saw its revenue pressured, with service revenue impacted by lower revenue from incoming traffic. In the mobile market, the company saw cuts in its mobile termination rates.

Under its new investment plan, the company is looking to extend its 3G and 4G networks in the country.

For Q4, Telecom Italia reported group EBITDA of €2.2 billion, down from €2.4 billion year-on-year, on revenue of €5.6 billion, down from €5.84 billion.

For the full year, the company reported an EBITDA of €8.79 billion, down 7.9 per cent year-on-year, on revenue of €21.57 billion, down 7.8 per cent.

Investments during the year totalled €4.98 billion (including the purchase of a 700MHz licence in Brazil). Net debt fell by €156 million to €26.65 billion, including the impact of €900 million spent on buying licences in Brazil and Argentina – without these purchases, debt would have been trimmed by €1 billion.

The company is also pressing ahead with a planned initial public offering of its Inwit towers unit.