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Telecom Italia announces a 5% increase in core earnings for H1

Telecom Italia reported a 5% rise in its core earnings on Tuesday as the fast-growing Brazilian operations offset sluggish Italian growth.

Piergiorgio Peluso was named CFO by the company to replace Adrian Calaza. This confirms an earlier report. Peluso was previously the CFO at TIM for seven years, until 2019. He is currently CFO of Autostrade per l'Italia. The appointment takes effect on November 6.

TIM announced that Eugenio Sangata, its Chief Public Relations and Security Officer, had resigned with immediate effect.

An earlier report stated that Italian shipbuilder Fincantieri was poised to name Santagata as the head of its defence division.

Why it's important

Poste Italiane, a financial conglomerate, replaced France's Vivendi, as the largest shareholder in TIM. It now holds a 24.8% share.

TIM, having sold its landline network in a bid to reduce debt last year, is expected play a key role in the consolidation of Italy's Telecoms sector. The sector has been under intense pressure due to stiff competition for years.

By the Numbers

The largest Italian telecoms company reported that its EBITDA (earnings before interest and taxes) rose to 2.0 billion euros in the first six months of the year. Around 0.8 billion euro came from its Brazilian operations, an increase of 6.1% over the previous year.

The domestic EBITDA, after leasing, was 1 billion euros in 2013, up 4.2% on the previous year.

The total revenue for the semester was 6.6 billion Euros.

As of June 30, TIM's total net debt, including leases, was 7.5 billion euro.

TIM has confirmed its annual financial targets, which it announced in February. These included a return to cash-generation and a 7% increase in the group's core profits. $1 = 0.8655 euro (Reporting and editing by Matt Scuffham, Elvira pollina)

(source: Reuters)