The CEO of Telecom Italia claimed the company has overcome the price war in Italy, but revenues remained on a downward spiral in the third quarter. 

Group revenues fell 4.5 percent year-on-year to €5.4 billion between July and September as sales continued to decline in its home market and overseas.

In Italy, revenues fell five percent to €3.8 billion due to what the operator said remained a “structurally weak” economy in its home market.

Mobile revenues fell 5.5 percent to €1.3 billion, as its subscriber base dropped by 3.7 percent, while fixed revenues were down 6.2 percent to €2.7 billion, following a 5.4 percent fall in access lines.

The falls came despite a 19.6 percent growth in mobile broadband customers and a marginal 0.6 percent increase in fixed broadband subscribers.

In Brazil, revenues fell 3.1 percent to €1.6 billion, despite a 2.7 percent growth in mobile subscribers, which TI blamed on competitive market conditions.

[Read more: Telefónica completes GVT acquisition]

The decline in revenues meant group EBIDTA was down eight percent to €2.2 billion, while margins fell to 47.2 percent.

Capex was down 13.2 percent to €933 million after Telecom Italia said it was “abandoning” certain unnamed platforms to focus on LTE and fibre investments.

CEO Marco Patuano commented: "The signs of change coming from [Italy] are now a reality: we have overcome the 'price war', contrasting the arguments of those who predicted that competition in the sector would be based solely on constant price cuts, which would have brought nothing but a decline, with our policy based on quality of service.

“Our investments are bringing concrete results: over 150,000 customers have subscribed to the Tuttofibra service to date and we're proceeding at an average rate of 1,500 new contracts per day.

“In mobile telephony as well, 4G is now a mature technology that is coming into daily use and distinguishes our offer from that of our competitors.”

Chairman Giuseppe Recchi added: “We are investing heavily both in Italy and in Brazil to develop fixed and mobile ultra fast broadband… we are doing this in a way that ensures financial compatibility.”

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