Telecom Italia set to raise 2022 core profit outlook – sources
2022.08.03 19:34
FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi
MILAN (Reuters) -Telecom Italia (TIM) is set to raise its core earnings targets for this year on the back of its second-quarter results, two sources familiar with the matter said on Wednesday.
TIM, heir to the former Italian phone monopoly, has been struggling to stay competitive in its home market, where it makes the bulk of its revenue. It reported a record 8.4 billion euros ($8.5 billion) net loss last year following a string of downgrades of its targets.
The company now sees organic or self-generated core earnings or EBITDA after lease costs falling this year at a softer pace compared with a previous forecast of a “mid-to-high teens” decrease, the people said.
They declined to be named as deliberations are underway and plans are not public.
A spokesperson for TIM, which will report quarterly results later in the day, declined to comment.
In June, Chief Executive Pietro Labriola said he hoped the group could surprise markets with positive first-half results.
Telecom Italia (BIT:TLIT) shares were up 4.4% at 0.224 euros by 1430 GMT, outperforming a flat Italian blue-chip index. Yet the stock remains close to an all-time low hit in July.
Under Labriola, TIM’s fifth CEO in six years, the company is seeking an overhaul of its business centred around ceding control of its landline grid to state lender CDP in a bid to raise cash and cut its debt pile.
Still, valuation and regulation issues are thwarting these efforts, while the collapse of the coalition government led by Prime Minister Mario Draghi has further complicated the company’s plans.
($1 = 0.9876 euros)
