ROME (dpa-AFX) - Italian telecom giant Telecom Italia (TIAOF.PK, TI) reported that its EBITDA for the first quarter of 2018 was 1.817 billion euros. Comparable EBITDA in the first quarter of 2018 was 1.893 billion euros, a decrease of 4.9% from 1.990 billion euros last year.
Non-recurring operating charges were 95 million euros impacted Group reported EBITDA. Non-recurring operating expenses were mainly in relation to provisions covering the 74.3 million euros fine levied on 8 May 2018 for alleged infringement of the 'Golden Power' rule, which TIM is contesting and will appeal against shortly.
Separately, Telecom Italia said its board of Directors has deemed that Vivendi is no longer a party exercising direction and coordination over TIM and therefore terminated the previous direction and coordination activity.
Telecom Italia' quarterly Organic EBITDA, net of the non-recurring component, totalled 1.988 billion euros, an increase of 1.8%.
The net profit for the first quarter of 2018 attributable to the Shareholders of the Controlling Company totalled 216 million euros. Comparable net profit stood at 250 million euros, compared to 200 million euros in the prior year.
The revenues of the first quarter of 2018 were 4.709 billion euros. The comparable revenues of the first quarter of 2018 totalled 4.742 billion euros, 1.6% down from the first quarter of 2017. The positive trend in the revenues of the Domestic Business Unit (+62 million euros) was offset by the reduction in the Brazil Business Unit (-144 million euros), which was entirely related to a negative exchange rate effect of 191 million euros, in the absence of which there would have been growth of 47 million euros.
Separately, Telecom Italia said that its board has formed a new internal committee focusing on the investigation and monitoring of interactions with related parties, and consequently the specific corporate procedure has been amended. Directors Morselli (Chairman), Capaldo, Cappello and Roscini will be members of this Committee.
The Board has also decided the remuneration to be assigned to the directors and committee members, achieving savings compared with the previous levels of Board remuneration.
With the Chairman of the Board classified as an independent director, the body chose not to appoint a Lead Independent Director, instead updating the Company's Corporate Governance Principles to reflect this change.
The Board of Directors has deemed that Vivendi is no longer a party exercising direction and coordination over TIM and therefore terminated the previous direction and coordination activity, Telecom Italia said.
The CEO has taken interim responsibility of the Procurement Unit & Real Estate department.
Copyright RTT News/dpa-AFX