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Telecom Italia sales down 12%, triples cost-cutting target
2016-05-16 08:19:00| Telecompaper Headlines
(Telecompaper) Telecom Italia reported a 12.1 percent year-on-year fall in first-quarter revenues to EUR 5.05 billion in organic terms, hurt by the continuing effects of the macroeconomic situation in Brazil and one-off charges. Domestic revenues came in at EUR 3.54 billion on an organic basis, down 2.3 percent year-on-year but identical to the previous quarterly decline, while sales at its Brazil unit TIM Brasil plunged 15.3 percent on an organic basis to EUR 897 million, impacted by the ongoing recession and provisions for customers' unpaid accounts. Group EBITDA fell 15.8 percent to EUR 1.71 billion, with the EBITDA margin dropping to 36.8 percent compared to 40.2 percent in the year-earlier quarter. In the accompanying statement, the company's new CEO Flavio Cattaneo said he was determined to improve profitability at Telecom Italia, announcing that the target for cost-cutting measures would be tripled to EUR 1.6 billion by 2018, including EUR 800 million in operating costs and EUR 800 million in capital spending.
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Category:Telecommunications