Telecom Italy closed the first quarter of 2016 with a profit of 433 million euros, against 82 million in the same period last year. Revenues amounted to 4,44 billion, down by 12,1% compared to the first three months of 2015; while the change in organic terms of revenues is 5,6%.
One billion and 600 million of "efficiencies" by 2018: this is what the Telecom Italia board of directors predicts, which examined theupdate of the 2016-2018 plan, “focused on a better allocation of investments and a more incisive recovery of efficiencies”. The acceleration of the creation of ultra-broadband infrastructures will be accompanied “by careful cost control – underlined the CEO Flavio Cattaneo – which will significantly increase the effectiveness of the investments. The goal is to reach 2018 billion efficiencies by the end of 1,6 compared to the previously forecast 600 million euros. These will be targeted actions equal to approximately 800 million on Opex and approximately 800 million on capex”.
As regards the Brazil, Cattaneo announced for the coming months “a strengthening of the efficiency plans envisaged so far while maintaining strong development in both 3G and 4G. We must take into account the profound changes in the macroeconomic, political and market context that have occurred in the country in recent months. A strong signal of change is needed, started with the appointment of the new Chief Executive Officer”. The overall efficiencies of 1,6 billion euros forecast for 2018 will be achieved on the Opex front, in particular, adds the note, through the reduction of the commercial component thanks to the optimization of acquisition and advertising costs; industrial costs by increasing productivity and simplifying network and IT platforms; of energy, support and leasing expenses through the optimization of spaces and the implementation of the 'zero base budget' approach; of the cost of labour. Investment efficiencies, on the other hand, against the maintenance of ultra-broadband coverage levels and service quality, will be pursued through the simplification of network architectures in order to optimize spending; a targeted allocation of expenditure based on the return on investment.
"From today a new phase begins for Telecom Italia, characterized by efficiency and focus on even more challenging objectives, as the board of directors had hoped for some time". This is what the president of Telecom said, Joseph Recchi, according to which "Telecom is confirmed as the leading investor in infrastructure in our country, with the aim of guaranteeing a more timely and widespread implementation of fiber optic network infrastructure with FttH/B technology in the most important cities and areas, in response to the growing demand for ultra-broadband for the use of quality and tailor-made innovative services and contents. We therefore confirm our leadership on the Italian market and the coverage targets for 2018: fiber to approximately 84% of the population (today 45%) and 4G to 98% (today 92%)”.
