Telecom Italia recorded improvements in revenue and net income as its operations in Brazil and Argentina provided a significant boost to the business.

Telecom Italia CEO Franco Bernabe said the international business has provided a “positive contribution” to the quarter, while the company had seen a “marked improvement” in domestic revenue trends. “The excellent performance of Latin America continues,” he added.

Telecom Italia recorded net income of EUR606 million in the first quarter of the year, up 10.4 percent compared to the same period in 2011. This was on the back of a 4.5 percent improvement in revenue, which hit EUR7.39 billion. EBITDA for the period was EUR2.96 billion, up 1.2 percent.

However, domestic revenue was down 2.4 percent compared to the first quarter of 2011 at EUR4.49 billion. Revenue from business customers fell by 6.1 percent, which the company partly attributed to lower prices and termination rates in its mobile business.

Consumer revenue was down 1.2 percent, largely due to the decline in traditional voice and messaging services. However increases in mobile internet and handset sale revenue helped offset this decline. Total domestic mobile revenue declined 1.7 percent.

Telecom Italia’s operations in Brazil and Argentina contributed 38 percent to the group’s turnover with margins of more than 40 percent, during the period.

TIM Brasil increased revenue by 19.1 percent to hit BRL4.47 billion (EUR1.75 billion) while Telecom Argentina increased revenue by 24 percent to hit ARS5.13 billion pesos (EUR893.5 million). Mobile was the main source of revenue in Argentina, contributing 72 percent to the unit’s total and increasing by 28 percent.

Telecom Italia’s adjusted net financial position was EUR30.31 billion, down EUR310 million compared to the same point in 2011 and by EUR102 million compared to the end of 2011. The company is undergoing a debt reduction programme which it hopes will see it reach a target of EUR27.5 billion by the end of the year.