Telecom Italia recorded a jump in earnings from its unit in Brazil alongside what it claimed as a significant improvement in its domestic business in Q2, as the company flagged talks with KKR over a potential sale of its fixed assets are progressing.
The company recorded revenue of €4 billion across the company, up 2.8 per cent year-on-year, but sill made a net loss of €124 million. This bottom line figure, however, marked an improvement on Q2 2022 when it lost €279 million.
In Brazil it credited price increases in postpaid and the migration of fixed customers to fibre for driving a 9.2 per cent increase in revenue.
Meanwhile, quarterly revenue from operations in Italy were up for the first time in five years. The operator is currently in the process of an efficiency drive to cut costs in its home market.
Telecom Italia’s domestic consumer unit continued to decline year-on-year though the company stated the trend had improved compared to Q1.
Measures in place to improve this part of the business include the “progressive repositioning of TIM as a premium brand” and selective price increases. It expects upped consumer prices to net it €70 million in additional revenue across the year.
In its enterprise segment, the operator highlighted strong growth in its cloud, security and “other IT services” though earnings from connectivity and IoT fell.
As part of its Q2 statement the company highlighted negotiations with KKR over the sale of fixed unit spin-off NetCo are continuing, with a target of receiving a binding offer by the end of September.
However, in comments reported by Reuters, Telecom Italia CEO Pietro Labriola cautioned the sale would only go ahead if the remainder of the business remained financially stable.