Telecom Italia investment dips to $1,067 mn in Q1

TIM logo unveiled
Mobile operator Telecom Italia has made an investment of 944 million euros or $1,067 million in Brazil and Italy during the first quarter of 2016.

Telecom Italia spent 778 million euros (+102 million euros) in Italy and 166 million euros (–121 million euros) in Brazil.

The total drop in Capex was 20 million euros. Telecom Italia said the Capex to revenue ratio was 21.3 percent (19.1 percent).

The focus of Telecom Italia was in the implementation of fiber optic network infrastructure with FttH/B technology in the most important cities and areas in Italy. The telecom network operator focused on the development of both 3G and 4G in Brazil.

Telecom Italia chairman Giuseppe Recchi said: “Telecom Italia aims at ensuring a more prompt and widespread implementation of fiber optic network infrastructure with FttH/B technology in the most important cities and areas in Italy.”

Telecom Italia aims to offer fiber network in approximately 84 percent of the Italy’s population by 2018 from 45 percent at present, and offer 4G to 98 percent population from 92 percent at present.

Telecom Italia CEO Flavio Cattaneo said efficiency of the investments can be significantly increased. The aim is to reach the end of 2018 with 1.6 billion euros of efficiencies compared to the 600 million euros previously envisaged. This will involve targeted actions amounting to around 800 million on Opex and around 800 million on Capex.

Telecom Italia revenue was 4.4 billion euros (–12 percent), while net profit was 433 million euros (82 million euros).

Telecom Italia generated consumer revenues of 1.8 billion euros (+2 percent) due to 855 million euros from mobile (+8.9 percent) and 5.8 percent increase in innovative services during the first quarter of 2016.

Telecom Italia said its debt as of 31 March 2016 was 28,233 million euros in the first quarter of 2016 against 28,475 million euros in December 2015.

Telecom Italia had 65,107 employees, including 52,554 in Italy at 31 March 2016 against 65,867 as of 31 December 2015, including 52,555 in Italy.

Baburajan K

Latest

More like this
Related

AT&T faces scrutiny over cybersecurity spending following data breach impacting 109 mn

Telecom operator AT&T has disclosed a significant data breach...

TPG Telecom and Optus network sharing deal faces review in Australia

Australia’s competition watchdog, the Australian Competition and Consumer Commission...

Telecoms handle energy costs focusing on sustainability

European telecoms are adopting green initiatives and investing in...

Liberty Global considers selling stake in Swiss telecom unit Sunrise

Liberty Global is exploring the sale of a stake...