Telecom Italia: posts nine-month loss on goodwill charge
(CercleFinance.com) - Telecom Italia reported a nine-month loss of 800 million euros on Friday, after taking into account a 2 billion euro non-cash goodwill impairment charge for the decline of its domestic business.
The company said the charge pushed its original net income of 1.2 billion euros into a loss, due to the deterioration of the competitive and regulatory context in Italy, along with higher interest rates.
Despite this "complex" and "challenging" macro-economic and market context, the first nine months of the financial year showed a solid operational management trend, the telecoms operator said.
TI cites as evidence the fact that the group's organic EBITDA - CAPEX indicator was particularly positive, amounting to 3.6 billion euros in the first nine months of 2018, showing double-digit (+15.7%) growth from the same period last year.
However, revenues for the first nine months of 2018 totalled 14.1 billion euros, down 3.1% on a comparable basis.
The decrease is almost entirely attributable to the devaluation of the Brazilian real, Telecom Italia said.
This nine-month report was frowned upon by investors: Telecom Italia's ordinary shares are down 4.4% in Milan this morning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The company said the charge pushed its original net income of 1.2 billion euros into a loss, due to the deterioration of the competitive and regulatory context in Italy, along with higher interest rates.
Despite this "complex" and "challenging" macro-economic and market context, the first nine months of the financial year showed a solid operational management trend, the telecoms operator said.
TI cites as evidence the fact that the group's organic EBITDA - CAPEX indicator was particularly positive, amounting to 3.6 billion euros in the first nine months of 2018, showing double-digit (+15.7%) growth from the same period last year.
However, revenues for the first nine months of 2018 totalled 14.1 billion euros, down 3.1% on a comparable basis.
The decrease is almost entirely attributable to the devaluation of the Brazilian real, Telecom Italia said.
This nine-month report was frowned upon by investors: Telecom Italia's ordinary shares are down 4.4% in Milan this morning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.