Telecom Italia (TIM) reported a significant drop in Capex (capital expenditure) mainly due to its attention to strategic priorities and profitability in Q1 2018.
Capital expenditure in the first quarter of 2018 totalled 694 million euros, 137 million euros less than in the first quarter of 2017, Telecom Italia said.

Telecom Italia invested 533 million euros in Italy, 98 million euros less than as compared with the first quarter of 2017.

Telecom Italia’s investment in Brazil was 161 million euros in the first quarter of 2018, 39 million euros less than in the same period in 2017.

The investments were primarily targeted at strengthening the mobile ultra-broadband network and developing the TIM Live fixed broadband business, Telecom Italia said.

Telecom Italia reported revenues of 4,742 million euros (–1.6 percent) despite Italy business added 62 million euros extra revenue. The dip in revenue was due to erosion of 144 million euros in Brazil revenue on account of negative exchange rate effect of 191 million euros.

Main business

Italy revenue 3,709 million euros (+1.7 percent)

Brazil revenue 1,037 million euros (–12.2 percent)

Telecom Italia’s Italy business generated service revenues of 3,399 million euros (+1.7 percent), including 2,419 million euros (–0.2 percent) from fixed market services and  1,123 million euros (+3.7 percent) from mobile market service.

Telecom Italia’s Brasil business reported service revenues of 3,983 million reais (+6.4 percent).

EBITDA in the first quarter of 2018 totalled 1,893 million euros (1,990 million euros in Q1 2017), 97 million euros (-4.9 percent) lower, with a margin of 39.9 percent (41.3 percent in Q1 2017, -1.4 percentage points).

EBIT in the first quarter of 2018 totalled 806 million euros, 59 million euros (-6.8 percent) lower than the first quarter of 2017 (865 million euros), with a margin of 17.0 percent (17.9 percent in Q1 2017, -0.9 percentage points).