MILAN, 10 Nov (Reuters) – Telecom Italia (TIM) on Tuesday confirmed its financial guidance through 2022 after recovering demand on the home market in the third quarter helped Italy’s largest telephone group to limit falling revenue.
Revenue at Europe’s sixth largest telecom group fell to 3.9 billion euros ($ 4.6 billion) in the three months to September, down from 4.4 billion a year earlier but slightly above analyst consensus of 3.8 billion euros provided. by the company.
Domestic income, which accounts for nearly 80% of the total, fell 7% annually to 3.2 billion euros in the period, thanks in part to higher demand for ultra-broadband.
Organic income before interest, taxes, depreciation and amortization (EBITDA) after rental costs fell 8% to 1.6 billion euros, broadly in line with estimates.
Italy’s economy rebounded strongly in the third quarter after a slump driven by restrictions to combat COVID-19 transmission eased over the summer.
The rise of the pandemic has now prompted the Roman government to impose new restrictions, but TIM has expressed confidence that its commercial strategy will eventually allow it to stabilize core revenues and profits.
TIM said it had separated its data center business, which is in the process of further development under a strategic partnership with Google into a new company expected to start operations in the first quarter of next year.
In addition, the FiberCop fixed network unit, to which TIM transfers its long-distance network, will start operating at the end of March, the group said.
TIM added that it is continuing to discuss with the government and state lender CDP about plans to merge FiberCop with its state-backed rival, Open Fiber. ($ 1 = 0.8460 euros) (Reporting by Elvira Pollina; editing by Valentina Za and Mark Heinrich)