TIM has had its best quarter in Italy since 2009, as the Italian operator nudged up its guidance for the year and announced a new fibre partnership.
For the three months ending 30 June, revenues from its mobile arm were up two percent to €1.26 billion, with mobile service revenues up 0.7 percent on 2015.
While overall sales for Italy were down 1.2 percent to €3.7 billion, this did not stop Ebitda from increasing 6.9 percent on a like for like basis to €1.7 billion.
TIM announced a new strategic plan in February as it looked to turn around its fortunes and bring about efficiencies of €1.8 billion by 2018. One month later, its CEO was ousted.
The performance means its infrastructure arm Inwit will have an extra €150 million to play with. The cash will be spent on the construction of more than 500 new sites and roll out of 4,000 small cells to improve the quality of its network coverage.
First half Ebitda was up 2.4 percent to €3.73 billion. Sales dropped 9.9 percent to €9.10 billion, almost entirely down to its challenging Brazilian business, where sales slumped 20.4 percent to €1.86 billion.
The results led the management team to upgrade its full year domestic Ebitda guidance to the low single digits.
Executive Chairman Giuseppe Recchi said: "We are very satisfied with the results of this quarter. It is the first important step of the turnaround the board of directors wished for for some time after years of decreasing turnover and margins. I see it as the start of a growth plan that will fully unleash the potential of Telecom Italia."
Group CEO Flavio Cattaneo added: "In Italy, telecom has reported the best quarter since 2009, demonstrating that the actions taken to date are bringing significant results.
"The organic Ebitda has started to grow again on both a quarterly and half year basis, the turnover of the mobile segment has improved its development trend and the landline segment has shown important signs of recovery, pulled along by the investments in ultrabroadband. We are therefore in the best conditions to face the second part of the year, which from September will see further new developments."
One of these developments is the creation of a fibre broadband joint venture with Fastweb to speed up fibre deployment across 29 cities, or three million people. TIM will hold 80 percent of the capital, with a joint investment of €1.2 billion.
As part of the partnership, TIM will buy from Fastweb enough FTTH infrastructure over the next 18 months to connect 650,000 homes across six cities to its network.