Telecom Italia Slows Down Decline in Sale in Q4
Published By : 20 Feb 2015 | Published By : QYRESEARCH
Chief Executive Officer of Telecom Italia SpA, Marco Patuano reported that the telecom giant has slowed down its revenue decline and reduced its debt.
The Q4 drop in sales was registered at 4.1% at EUR5.6 billion, as compared to a drop of 9.1% in the first nine months of 2014. However, the depreciation, earnings before interest taxes, and amortization dropped by 8.4% to EUR2.2 billion in tandem with estimates given by analysts.
Marco Patuano is trying to revamp Telecom Italia from its sinking status. In a bid to do so, he sold assets to reduce the overall debt, which was estimated at EUR26.7 billion a year ago. The net is much more than its market capitalization of EUR19 billion. In addition to these efforts, the telecom service provider announced its plans for a buyout which will eventually end its status of a public company.
The Milan-based service provider did show a keen interest in buying a controlling stake in Metroweb SpA, a broadband service provider. According to sources, the talks haven’t materialized yet due to no consensus over structure of ownership.
Presently, the wireless market in Italy is occupied by four network providers making it the most competitive market in Europe. There are only three network operators in Ireland, Germany, and Austria due to consolidations.
Italy might be catching up with this trend as Hutchison Whampoa Ltd. is getting aggressive with its efforts to merge business with its 3 Italia mobile carrier with Wind Telecomunicazioni SpA, which is owned by VimpelCom Ltd.