Telecom Italia: shares slide after in-line results
(CercleFinance.com) - Telecom Italia shares are down on Friday, after the Italian phone group reported in-line quarterly results, with strong performance in fibre.
Italy's largest telecoms operator said EBITDA dropped by 2.6% to 1.9 billion euros, a touch above the of 1.88 billion euro forecast provided by the company.
Its operating margin improved by 0.6 point over the quarter, to 42.2%, driven by cost containment initiatives.
The former telecoms monopoly's second-quarter revenues fell to 4.5 billion euros, down 3.9% on an organic basis, while the consensus was looking for 4.55 billion euros.
In its statement, the operator said its fixed-line segment in Italy increases in many indicators, thank to the ongoing migration from copper to fiber.
The number of fiber customers - retail and wholesale - now stand at 6.3 million, up 45% year-on-year, TIM said.
Telecom Italia also confirmed its expectations for a low single digit fall in organic group service revenue this year.
Telecom Italia shares were trading 1.3% lower in late morning trading on Friday, underperfoming the STOXX Europe 600 Telecommunications index, which is down 0.9%.
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