Wednesday, May 14, 2014
Telecom Italia tries to Steady the Ship
Telecom Italia reported a 6.2% fall in revenues on an organic basis in the first quarter of 2014 to 5.19 billion euros. Revenues in Italy fell 8.3%, dragged down by a 15.6% fall in mobile service revenue, compounded by a fall of 0.2% in Brazil.
The group said it is aiming for stable revenues between 2013 and 2016, while keeping capex at 18% of revenues in Italy and 17% of revenues in Brazil.
Telecom Italia said: "On the domestic market, while competitive dynamics cooled, particularly in the mobile telephony sector, average revenue per customer continued to fall in traditional services, partly as an initial result of a repositioning strategy towards bundle and/or combined fixed-mobile plans which – against a decline in near term profitability – will allow market share to be retained in the short term and expenditure and hence revenue to be gradually stabilised in the medium to long term. Results also continue to be affected negatively by a number of regulatory dynamics and aspects, particularly regarding the prices of wholesale services." source: Telecom Italia presentation
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