Telecom Italia Net Profit Fell 38% in 2017 on Restructuring Costs

   By Marc Navarro Gonzalez

Telecom Italia SpA (TIT.MI) said that its net profit fell 38% in 2017, largely due to the negative impact of non-recurring charges related to restructuring processes.

Italy's largest telecom operator said late Tuesday that net profit declined to 1.12 billion euros ($1.39 billion) from EUR1.81 billion a year earlier. Revenue rose to EUR19.83 billion from EUR19.03 in 2016.

Analysts had expected the Italian telco to post net profit of EUR1.49 billion and revenue of EUR19.79 billion, according to a consensus forecast provided by FactSet.

Telecom Italia said that earnings before interest, taxes, depreciation and amortization, or Ebitda, declined 2.6% to EUR7.79 billion, while operating profit stood at EUR3.29 billion, down 12%.

The company published its financial targets for the next three years. It sees strong growth in consolidated equity free cash flow, with an expected cumulative total of between EUR4 billion and EUR4.5 billion over the period.

Telecom Italia expects domestic revenue to remain stable until 2020, with annual low single-digit growth in Ebitda.

The telecommunications company plans to invest EUR9 billion in Italy over the next three years, it said, earmarking 50% of that sum for network expansion and innovation.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

March 07, 2018 01:47 ET (06:47 GMT)

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