Telecom Italia: strong quarterly results and partners KKR
(CercleFinance.com) - Telecom Italia shares were up on Wednesday morning, thanks to strong quarterly results released by the Italian telecom operator, which also unveiled a partnership with US private equity giant KKR.
Its "after lease" Ebitda fell by 6% to 1.6 billion euros in the second quarter, short of the consensus of 1.5 billion euros, on revenues that are down 10% to 3.8 billion euros, broadly in line with expectations.
Telecom Italia also announced that its board of directors welcomed the planned partnership with KKR's infrastructure fund.
Under the terms of the agreement, KKR will put some 1.8 billion euros on the table to take a 37.5% stake in FiberCop, TIM's wholesale fiber and copper network business.
Swisscom's Italian subsidiary Fastweb would hold 4.5% of FiberCop's capital.
All these announcements boosted the share of the incumbent operator, which rose by more than 3% on the Milan stock exchange, largely outperforming the FTSE MIB index, which was up just 0.8%.
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