ROME (dpa-AFX) - Italian telecom giant Telecom Italia group (TIAOF.PK, TI) Friday reported lower profit and revenue for the full year, as the economic situation continued to be weak. On the positive side, the troubled firm managed to reduce its debt during the period.
Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA fell 7.9 percent to 8.79 billion euros. In organic terms, it dropped 6.8 percent.
Revenues declined 7.8 percent to 21.57 billion euros from 23.41 billion euros. Stripping out the effect of changes in exchange rates and consolidation area, consolidated revenues were lower by 5.4 percent.
Revenue dropped 6.6 percent in the Domestic business to 15.30 billion euros with a 7 percent decline in Core Domestic and a 1.5 percent slide in International Wholesale operations. However, the company noted that a recovery trend was seen in the last quarter.
In Core Domestic, Consumer business revenues fell 7.8 percent, amid a 11.1 percent decline in Mobile services revenues. Fixed service revenues, which dropped 5.9 percent, showed signs of recovery with respect to the deteriorating trend observed in the first part of the year.
In the International business, revenues for Voice services and IP/Data services fell due to competition with a drop in prices. Revenue in the business segment dedicated to multinationals fell 3.1 percent, while revenues for Mobile services rose 12.2 percent.
Revenues fell 10.1 percent in Brazil to 6.24 billion euros. Mobile Average Revenue Per User or ARPU fell 4.8 percent to 17.7 reais, affected by a further reduction of the mobile termination rate.
The company was able to reduce adjusted net financial debt by 156 million euros to 26.651 billion euros. This includes the impact of 0.9 billion euros for the purchase of spectrum in Brazil and Argentina.
The stock settled in Milan on Thursday at 1.02 euros.
Copyright RTT News/dpa-AFX