MILAN, May 19 (Reuters) - Italy’s biggest phone group Telecom Italia (TIM) on Wednesday said its financial targets were unchanged after first-quarter earnings broadly met expectations, pointing to a stabilisation in revenue after the hit from the pandemic.
Organic earnings before interest, tax, depreciation and amortisation (EBITDA) after lease costs fell 1.7% to 1.38 billion euros ($1.68 billion) in the January-March period, versus an analyst consensus provided by the company of 1.37 billion euros.
Organic EBITDA strips out one-off items.
TIM reported a net 200 million euro quarterly loss hit by costs borne to send around 1,300 staff into early retirement.
“In the first quarter ... the process of stabilising revenues and operating indicators continued, in addition to cash generation and debt reduction,” TIM said in a statement.
Revenues in the quarter totalled 3.75 billion euros, unchanged from the previous year on a comparable basis.
TIM’s core domestic revenues were down 0.6% year-on-year to 3.10 billion euros, slightly above a consensus estimate of 3.05 billion euros, helped by a 3% annual rise in fixed telephony.
With fixed-segment customers increasingly migrating towards broadband, TIM said it had added 424,000 new retail and wholesale ultrafast lines in the period, up 23% from a year earlier.
Under a three-year strategy unveiled in February, TIM, whose top investors are French media giant Vivendi and Italian state lender CDP, said it expected an organic EBITDA after lease costs either stable or showing low single-digit growth in 2021.
($1 = 0.8193 euros)
Reporting by Elvira Pollina; editing by Valentina Za