The Telecom Italia stock on the Stock Exchange loses ground (-2,2%), the worst stock on the Ftse Mib after the publication of the quarterly accounts. The former monopolist closed the first three months of 2014 with a Net income down 39%, to 222 million euros, against the 364 million reported in the same period last year. The result is below the expectations of the analysts consulted by Bloomberg, stuck at 337,7 million euros. Down 11,9% the revenues, amounting to 5.188 million compared to 5.889 million twelve months ago (the forecasts were for a figure of 5,23 billion).
In particular, explains a note, Core Domestic revenues amounted to 3,469 billion euros and decreased by 9,5% on an annual basis. Revenues in Brazil fell by 18,8%, but after a devaluation of the exchange rate of almost 20% compared to a year ago.
In 2014, the group sees "a further overall decline in the domestic market, in any case more contained than that observed in 2013", and growth in Brazil. Although "the first 2014 evidence confirms the cooling and improvement of competitive dynamics in the mobile sector" .
THEfinancial debt adjusted net amount stood at 27,529 billion, up on the 26,807 billion reported at the end of last year but down by over 1,2 billion on the first quarter of 2013.
THEebitda it also fell by 5,7% on an annual basis, to 2,2 billion euros, with an EBITDA margin of 42,4% (40,8% in 2013), with the Domestic business unit's EBITDA down to 1,792 billion (-8,2%). Ebit improved to 1,167 billion (+2,7%), while the Domestic one decreased to 990 million euros, with a reduction of 83 million euros compared to the same period of 2013 and with an incidence on revenues of 26,6 .26,4% (XNUMX%).
In 2014, the group sees "a further overall decline in the domestic market, in any case more contained than that observed in 2013", and growth in Brazil. Even if "the first 2014 evidence confirms the cooling and improvement of the competitive dynamics in the mobile sector".
"We have accelerated investments in new technologies by strengthening our leadership in mobile and fixed ultrabroadband coverage", commented the CEO, Marco Patuano, "we have not lost focus on financial discipline through important efficiency programs both on costs and on traditional capex. Our offer is moving away from the logic of price-based competition to relaunch a competition based on quality and innovation. Thanks to this we will be able to leverage our distinctive infrastructures that we are building, exploiting a long-term competitive advantage. The content agreement reached with Sky, while gradually becoming fully operational, allows us to immediately offer our customers premium offers, starting with the broadcast of the World Cup on mobile phones”.
From the board, as expected, unfiltered news on the movements taking place inside and outside the former incumbent. Telefonica, number one shareholder of Telco, awaits the cancellation of the Italian partners (Intesa, Mediobanca and Generali) and the next moves of Mediaset on the Spanish digital platform, of which Telefonica is today the first shareholder after the agreement with Prisa while the Biscione owns the 22%.
The two matches register in a moving picture, in which agreements between telecommunications companies and content producers are multiplying: this morning At&t announced in the USA a 50 billion dollar offer for Direct TV, one of cable's great competitors. Yesterday Murdoch's project aimed at integrating Sky Italia and Sky Deutschland under the banner of BskyB was launched, perhaps in view of an agreement with Vodafone in an anti-BBC function (which has won the rights to English football).
