Telecom Italia has posted its financial results for 2012, say news reports.
Due to continued weakness in Italy and a slowdown in Brazil, the company has fallen short of meeting its financial targets for the year.
In Italy, the company’s revenues declined by 5.8 per cent and stood at Euro 17.9 billion. The company’s revenues have been affected by cuts in mobile termination rates, tough competition and the weak economic environment. Its earnings before interest, taxes, depreciation, and amortisation fell by 5.2 per cent to Euro 8.7 billion and its margin improved to 48.6 per cent. In the fourth quarter of 2012, the company’s revenues from the wireline business declined by 8.7 per cent and stood at Euro 3.19 billion and sales from the company’s TIM unit stood at Euro 1.66 billion. The TIM unit managed to garner 36,000 new subscribers in the fourth quarter of 2012.
Meanwhile, handset sales for the fourth quarter of 2012 stood at 1.71 million and the company’s average revenue per user dropped by 2.2 per cent year-on-year to stand at Euro 14.9.
During the period under review, the company reported 7.02 million fixed-line broadband connections and its fixed line telephony base fell by 203,000 to 15.90 million. Telecom Italia had 16,000 IPTV subscribers. The company’s adjusted net debt fell to Euro 28.3 billion at year-end from Euro 30.4 billion in 2011 and its operating cash flow increased from euro 5.8 billion in 2011 to Euro 6.5 billion in 2012. The company’s capex fell from Euro 6.1 billion to Euro 5.2 billion.
