Telecom Italia has announced a fall in Q1 revenue and profits as it continues to struggle, but is hopeful a new content deal with Sky will change its fortunes next year.

Revenues fell 11.9 percent year-on-year to €5.2 billion as its businesses in both Italy and Brazil suffered from a range of factors.

Sales fell 8.3 percent in its home market as falling demand for voice and messaging services was only marginally offset by increases in the fixed-line broadband and mobile internet.

ARPU in both the personal and business sectors continued to fall.

However, international wholesale revenues showed some growth, increasing 6.4 percent thanks to demand for voice services. 

The company has continued to expand its presence in Brazil, although growth slowed in the mobile sector due to increased competition.

Revenues there fell 18.8 percent due to the devaluation of the Brazilian Real. In local currency, revenues were broadly flat.

The company saw its net profit fall from €364 million to €222 million, while net debt decreased by €1.2 billion to €27.5 million. Meanwhile, capex fell by €82 million to €684 million.

Telecom Italia CEO Marco Patuano commented: "We have accelerated our investments in new technology, strengthening our leadership in fixed and mobile ultrabroadband coverage.

“This has not meant a loss of focus on financial discipline, with major efficiency programmes on both costs and on traditional capex. Our offer is evolving from a price-based competitive rationale, relaunching competition based on quality and innovation.”

[Read more: Patuano to stay on as Telecom Italia CEO]

The CEO also talked up the content agreement with Sky, announced last month, that gives Telecom Italia customers access to Sky’s television offering from 2015.

The deal will be primarily directed towards customers who have an optic fibre connection, and will be a driver for the development of ultrabroadband.

However, Telecom Italia said will offer FIFA World Cup matches on mobile devices this summer.

“This agreement is part of Telecom Italia's overall strategy, which identifies the offer of premium content as an element that adds value to its new generation network infrastructure. Indeed, we are totally convinced that one of the main drivers of our business is the development of innovative services, particularly in entertainment for the consumer market," said Patuano.

“This partnership, which allows our customers to access the most extensive pay TV offer available on the market, is particularly satisfying for us, since it creates a new industrial model for the consumption of audiovisual content, thanks to the technological skill of Telecom Italia and the production know-how of Sky".

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms