MILAN, Aug 3 (Reuters) – Telecom Italia (TIM) expects operating profit to decline less sharply than previously expected in 2022 on the back of encouraging second quarter results, helped by cost cutting and the contribution of its Brazilian subsidiary.
Italy’s leading telecommunications operator said on Wednesday, confirming information from Reuters, that it now expects its gross operating surplus (Ebitda) this year to fall in the low end of a range of 1 to 10% and not more in the middle or the top.
TIM said its Ebitda fell 12.3% for the April-June period to 1.3 billion euros, slightly above analyst consensus of 1.29 billion.
“The stabilization and reorganization of the domestic business continued in the second quarter, as did the acceleration of the development of TIM Brasil,” the company said, adding that it had already achieved approximately 70% of its reduction target. costs for 2022.
Under the direction of its managing director Pietro Labriola, Telecom Italia presented on July 7 a strategic plan aimed at separating its fixed telephony network from its service activities in the hope of raising cash and reducing its debt.
Italy’s leading telecommunications operator is struggling to stay competitive in its home market, where it makes most of its revenue, and posted a record net loss of 8.4 billion euros last year. (Report Elvira Pollina; French version Elitsa Gadeva, edited by Jean-Stéphane Brosse)