Telecom Italia returns to profit in 2016 and closes the year with an increase in ebitda and a decrease in financial debt. On the basis of these results, the board of directors will propose to the assembly the distribution of a dividend for savings shares only equal to 2,75 euro.
News that confirms the expectations of analysts and investors in Piazza Affari, where the stock ended the session with a rise of 2,63%, among the best blue chips of the day.
Going back to the accounts, in 2016 revenues fell to 19.025 million euros, down by 3,5% compared to 2015 (19.719 million euros). The company points out that "in terms of organic change, calculated excluding the effect of the change in exchange rates and the scope of consolidation, consolidated revenues decreased by 2,6% (-501 million euros)".
Group profit turns positive, settling at 1,8 billion euros against the 70 billion losses recorded in 2015, while the Operating Result (EBIT) was equal to 3,7 billion euros, up 25,6% compared to 2015 (+ 26,8% in organic terms).
Lebitda at the end of 2016 stood at 8.002 million euros, a result that represents a 14,2% increase compared. In organic terms, EBITDA shows a positive change of 1.057 million euros (+15,2%) compared to the previous year, with an incidence on revenues up by 6,5 percentage points.
L'net financial debt fell to 25.119 million euros at 31 December 2016, a decrease of 2.159 million euros compared to 31 December 2015 (27.278 million euros). "In 2016 - underlines the company - the reduction in debt was guaranteed by the positive dynamics of operating management, by the benefits deriving from the conclusion of the sale of the Sofora - Telecom Argentina group (with the collection of the price and the consequent deconsolidation of the related financial debt) and the capital strengthening deriving from the conversion into TIM shares, in November, of the Mandatory Convertible Bond for 1,3 billion euros. Conversely, the level of debt was negatively influenced by the trend in the Brazilian exchange rate”.
Tim has also defined a project which envisages reaching 2018% fiber coverage in the country in 95, almost two years ahead of schedule. In 2019, coverage will rise to 99%, thanks also to wireless technologies, keeping the capex envisaged in the business plan unchanged with the assistance of a financial partner who will be chosen in the coming months.
The board approved the project presented by the CEO, Flavio Cattaneo, aimed at creating companies that will deal exclusively with the selective development of new fiber infrastructures in areas included in the classification of clusters C and D (so-called "white" or rural areas) in based on EU standards. The project, a note explains, does not lead to an increase in the level of investments already planned for the Tim Group.
