Telecom Italia said it was continuing to see gradual improvement across the business after revenue losses slowed in the first quarter of 2015.

The indebted operator saw sales fall 2.6 percent to €5.1 billion in the three months to March, reflecting a lower sequential decline than in previous quarters.

The company credited this to the acceleration of broadband services in Italy and the stabilisation of its customer base.

In Italy, sales declined 2.6 percent to €3.6 billion after lower sales across TI’s Consumer, Business and National Wholesale units.

In its consumer segment, sales dipped by 1.5 percent to €1.7 billion following a decrease in mobile and wireline service revenues, which were down 4.3 percent and 1.4 percent respectively.

The enterprise segment saw sales of €1.1 billion, down 5.3 percent, following a decline in traditional voice and messaging services.

The operator’s National Wholesale unit registered revenues of €448 million after shrinking 2.8 percent.

[Read more: Telecom Italia, Sky unveil quad-play deal for Italian customers]

In Brazil, revenues fell 3.3 percent to R$4.5 billion (€1.3 billion) due to lower mobile termination rates.

Although the company returned to profit for the first time in three years in 2014, profits declined between January and March.

Telecom Italia recorded net income of €258 million, down almost 30 percent compared to a year previously.

EBITDA was down 7.7 percent to €2 billion and margins shrank to 40.7 percent.

The operator said this was due to the negative impact of bond buyback transactions.

Capex was up 40 percent to €964 million as it began its €10 billion investment plans for 4G and broadband networks in Italy and Brazil.

[Read more: Telecom Italia joins public-private partnership to bridge infrastructure gap]

Looking ahead, Telecom Italia said it expected a “progressive improvement” across all of its markets, in-line with its EBITDA stabilisation target in 2016.

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