Telecom Italia reported a net income of EUR 1.4 billion in 2014, up from a EUR 674 million loss the previous year, in what was its first profit since 2010. All other financial results for 2014 were published last month to coincide with the launch of its 2015-2017 business plan to modernise its fixed and mobile broadband networks. The company’s full-year revenues were down 7.8 percent to EUR 21.57 billion, a slight improvement on the previous year’s fall of 9.1 percent, with EBITDA falling by 7.9 percent to EUR 8.79 billion.
At the board meeting ratifying its full-year results, the company also announced that it would be launching a bond of up to EUR 2 billion bond on 20 March, with the final conversion price yet to be confirmed. The bond settlement is expected to take place on 26 March and the proceeds will be used to refinance Telecom Italia’s existing net debt of EUR 26.7 billion.
Looking ahead, the company said traditional services such as access and voice would continue to fall, but would be partly offset by revenues from innovative services due to the increasing demand for connectivity and digital services. Although the combined effect would likely see further falls in the Italian market, they would be “considerably less… than in previous years, particularly on mobile,” said the company in a statement. Telecom Italia’s CEO Marco Patuano added: “The positive trend of our business in the early months of 2015 is in line with goals we previously set and shows the company is on the right path.”
The company called a shareholders’ meeting for 20 May, which is expected to confirm Vivendi as the leading shareholder, after it received 5.7 percent of Telecom Italia shares (8.3 percent of voting share capital) from Telefonica as part of the sale of its Brazilian broadband operator GVT.