Twelve billion of investments in Italy in the three-year period, Ebitda confirmed at 2015 levels for this year and growing in 2017 and 2018, adjusted net financial debt ratio to reported Ebitda below 3x in 2018. These are the strategic data envisaged by Telecom Italia's new business plan for 2018, which is presented to the financial community on Tuesday afternoon in London: for Italy, this is 2 billion more investments than the 2015-2017 plan. In particular, around 6,7 billion will be dedicated to the innovative component (NGN, LTE, Cloud and platforms, Sparkle and Transformation). The plan provides for further acceleration on fiber and super-fast internet.
ITALY
At the end of 2018, Tim expects to increase coverage of the country with new generation networks e reach 84% of the population with optical fiber (for which 3,6 billion have been allocated compared to the 3 in the previous plan) and 98% of the population with the Lte 4G mobile network, which instead will cost 1,2 billion euros.
In the plan of the Italian TLC LTE customers are expected to account for approximately 2018% of customers in 70 Mobile Broadband, thanks to the almost total coverage of the country at 75 Mbps, with peaks of 300 Mbps in the eight main cities thanks to the use of
technologies of carrier aggregation. “Tim – reads the note – expects to complete the transition from traditional Telco to Digital Telco & Platform Company”.
BRAZIL
In Brazil, where Tim Brasil controls, Telecom Italia's goal is to increase its market share and margin on Ebitda, while investments are expected to be within 14 billion reais (almost 3,2 billion euros). In the note released on Tuesday morning, Telecom says that over the course of the plan further opportunities for growth of the economic-financial targets and recovery of efficiency (over 1 billion reais) will be identified for the group, also through the further reduction of operating costs.
ACCOUNTS 2015
On Monday, the Board also approved the accounts for 2015: Telecom Italy ended the year with total consolidated revenues for 19,7 billion (-4,6% in organic terms compared to 2014) and revenues from consolidated services for 18,3 billion (-3,1%). This was communicated by the company, which released the data before the opening of the Stock Exchange.
In the note, Telecom underlines the return to revenue growth from mobile services and the improvement of new generation ones (fiber and Lte). L'ebitda consolidated amounted to 7,0 billion euro (-17,9%), but net of non-recurring items the figure would be around 8,1 billion euro (-4,5%). The investments reached 5,2 billion euros, an increase of 213 million euros compared to 2014.
THEnet financial debt instead increased to 27,3 billion euro, 0,6 billion more than at 31 December 2014. If we exclude the effects of purely accounting items (ias17), the adjusted net financial position decreased by approximately 0,9 billion compared to 31 December 2014 (25,8 billion).
Il margin of liquidity as at 31 December 2015 it remained high, reaching 12,0 billion euro (13,1 billion euro at the end of 2014) and covering financial maturities up to beyond the next 24 months.
At the moment the market does not reward the innovations presented by the group: a Business Square Telecom Italia shares lost 3,59% to 0,845 euros per share at 10.55 am.
