Telecom Italia hailed a “significant recovery” in its numbers, including the best result for its domestic unit since 2007, accompanied by signs of stabilisation for its Brazil operation.

The board also approved a three year strategic plan, which includes €11 billion of investments in Italy including €5 billion which will go on “speeding up the development of ultra-broadband networks”.

By the end of 2019, it aims to reach more than 99 per cent of the population with its 4G network and 95 per cent with its fibre optic infrastructure. It will also focus on “convergence and content”.

It is also looking to continue its work repositioning TIM Brazil “based on the quality of the offer and of the networks and convergence”, to enable it to effectively compete in the contract segment and return to profitability. By the end of its plan, 95 per cent of the population will have access to 4G, with coverage in around 3,600 cities.

The company said Q4 revenue improved in both reported and organic terms, “reversing a negative trend that had persisted for 18 quarters”.

EBITDA for the fourth quarter of €2.1 billion was up 55 per cent year-on-year, benefitting from cost reduction efforts, on revenue of €5.1 billion, up 5 per cent.

This, it said, was driven by its domestic unit aided by offers aimed at optimising use of the mobile network in off-peak hours and retaining the customer base by offering new products in adjacent markets.

Q4 EBITDA for Italy increased 65 per cent to €1.7 billion, on revenue which increased 3 per cent to €4 billion. Mobile revenue increased 4 per cent to €1.4 billion.

It also noted positive trends from its Brazil operation, which in an improving macroeconomic and competitive context, is “significantly” slowing its negative trend. It said this is linked with a repositioning in the contract segment and strengthening of its main operational indicators.

EBITDA in this business increased 6.5 per cent to BRL1.6 billion (€465 million), on revenue which decreased 1.7 per cent to BRL4 billion.