Net monster loss for Telecom Italia, which accumulates difficulties
Milan – Operator Telecom Italia (Tim), who was already weakened by the tensions between its shareholders Vivendi and Elliott, sees accumulating difficulties: it suffered loss of monster in the third quarter due to asset devaluation and could not confirm its target for 2018.
Net loss in the third quarter amounted to about EUR 1.4 billion, compared to a profit of 437 million last year.
During the first nine months of this year, it reached EUR 868 million (EUR 770 million), compared to a gain of EUR 1.03 billion in the same period of 2017.
Devaluations amounted to about 2 billion euros.
These are the result of "deteriorating competitive framework and regulation, and higher interest rates," the team said in a statement, adding that they did not change the strategic priorities of the three-year plan.
In this context, the group did not yet confirm its target for the corrected net debt and EBITDA for 2018 at about 2.7 at the end of 2018, established before the acquisition of 5G frequencies.
The group explained this decision "to many factors, including a fine related to the Golden Power process (imposed by the government due to the failure of Tim's obligations in terms of information, Ed), consolidation into a negative competitive context, tensions related to regulation on the domestic market, with a low Brazilian real exchange rate ".
In Italy, the team also had to face the arrival of French mobile operator Iliada since June, which cut off prices, as it has done in France.
His accounts will also be sealed in the coming months by a $ 2.4 billion check that will pay for 5G frequencies, far more than originally planned.
These frequencies are awarded on the peninsula at the end of September – at the beginning of October at the end of auctions reaching the crazy amount.
– "Disaster Management" –
Among other financial information released on Thursday night, Tim's quarterly revenue fell 4.9% to 4.66 billion euros (-4.1% on a comparable basis, to 4.7 billion euros).
The Group also recorded net debt of EUR 25.2 billion, which is more than one billion euros over a year.
"Despite the complex and difficult macroeconomic and market framework, the first nine months of this year show a strong evolution in operational management," despite the Italian operator.
But these statements do not cover the difficulties affecting the Team, both from the standpoint of its results and its management.
Vivendi is the main shareholder of 24 percent of the operator, but on May 4, he lost control over the management of CA Telecom Italia in favor of the American Elliott activist fund.
Elliott's "independent" list now has ten mandates of fifteen, and Vivendi five, and tensions between the two shareholders and their representatives are repeated.
"The new government fails," Vivendi said at the beginning of September, saying Elliott "deeply concerned about the catastrophic management of Telecom Italia."
"Widening rumors (including those of the recurring departures of Team Principal, Amos Genish) cause malfunctions that are detrimental to smooth running and the results of this team," added Vincent Bolloré's group, complaining of the sharp fall of the Treasury stock market since May.
Elliott was surprised by these remarks, pointing out that Vivendi never considered it necessary to change management, and the current executive director appointed the previous board of directors with the majority.
In May last year, the French group indicated that it could request the convening of a new General Assembly to re-exchange Telecom Italia's turnover. The premise that the Italian press has resounded recently.
CCO / fjb
(© AFP / 08 November 2018 23h03) <! –
(AFP / 09.11.2018 00:05)