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Telecom Italia cuts 2021 core revenue purpose on residence market weak spot

MILAN, Oct 27 (Reuters) – Telecom Italia (TLIT.MI) (TIM), Italy’s largest telecoms firm, on Wednesday mentioned it had additional lower its 2021 core revenue steering to mirror worsening market circumstances.

It mentioned its board had mentioned a attainable reorganisation to extract worth from the group’s belongings and requested CEO Luigi Gubitosi to proceed to check choices.

Organic earnings earlier than curiosity, tax, depreciation and amortisation after leases (EBITDA-AL) fell 7.6% year-on-year to 1.46 billion euros within the third quarter, just under an analyst consensus supplied by the corporate of 1.47 billion euros.

Europe’s sixth-largest telecoms group mentioned home revenues fell 3.2% year-on-year to three.1 billion euros, in keeping with expectations.

Like different European friends, TIM is grappling with aggressive value competitors on its crowded residence market, which accounts for almost 80% of gross sales.

TIM mentioned it anticipated its natural EBITDA-AL to publish a mid- single digit drop this 12 months, versus a earlier forecast for a low-to-mid single digit decline.

TIM additionally pushed again a purpose to stabilise home service revenues in 2021, forecasting a low single digit lower.

It now sees the cumulated free money circulate over the 2021-2023 interval at round 3.5 billion euros from round 4.0 billion euros beforehand.

A supply near French media group Vivendi (VIV.PA), TIM’s high investor behind state lender CDP, on Wednesday mentioned the group remained dedicated to supporting TIM regardless of the disappointing outcomes. learn extra

In July TIM had pushed again a goal to stabilise its core revenue this 12 months citing the start-up prices of a partnership with sport video streaming app DAZN to distribute Italy’s top-flight soccer matches .

Reporting by Elvira Pollina; enhancing by Valentina Za and Aurora Ellis

Telecom Italia new logo is seen at the headquarter in Rozzano neighbourhood of Milan, Italy, May 25, 2016.    REUTERS/Stefano Rellandini//File Photo