Telecom Italia Q1 Revenues Miss Expectations As Profits Fall
Published on: 13th May 2014
Debt laden Telecom Italia reported first quarter results that missed most analyst expectations as the company came under pressure in the wireless market.
The company reported a 12 percent decline in revenues for the three month period of EUR5.2 billion (USD7.1 billion), which was below the average expectation of EUR5.23 billion.
Heightened competition in the domestic mobile market leading to pressure on prices along with a weak local economy was blamed for much of the decline. Increased use of OTT services also ate into the company's core voice call revenues.
While sales in the home market fell by 8.3 percent to EUR3.7 billion, sales in Brazil also fell, on a reported basis, by 19 percent to EUR1.45 billion -- due to currency fluctuations.
EBITDA also fell, but within expectations, by 8.4 percent to EUR2.2 billion.
Net profit declined to EUR222 million, from EUR364 million a year ago.
"As a whole we are in line with our plans and targets, which see a progressive acceleration in year-on-year recovery," the company's newish CEO, Marco Patuano said in a statement.
The company ended the period with EUR27.5 billion of net debt.