Telecom Italia is offering new equity bonds to help fund its capex drive after announcing a return to profit for the first time in three years. 

The operator revealed net profits of €1.3 billion in 2014 following the final approval of its full-year financials by the group’s board of directors. This compares to losses of €674 million in 2013.

It follows the announcement last month that full-year revenues were down 7.8 percent to €21.6 million.

CEO Marco Patuano said: “The 2014 results show that the choice to invest in our future is proving to be a winning one. The positive business trend in the first months of 2015, in line with the goals we had set ourselves, also confirms that Telecom Italia is moving in the right direction and is returning to the role it deserves of operator of primary importance in the telecommunications sector.”

Telecom Italia also announced it is seeking up to €2 billion in an unsecured, equity-linked bond issue to help see through its plans to invest €10 billion in its core business between now and 2017, including a €500 million spend on new FTTH and FTTC deployments.

The operator also plans to invest R$14 billion (€4.3 billion) in its Brazilian subsidiary over the next two years, with the intention of turning the business towards more data-centric offerings.

The bonds will initially launch with an offering of €1.5 billion but may be increased by a further €500 million, Telecom Italia said.

The operator confirmed that its Telecom Italia Media business will be merged into the main group as part of its plans to unite its fixed, mobile and broadband services.

Telecom Italia Media serves as the group’s mass media business, dealing in TV production, broadcasting and advertising activities.

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