Italy’s TIM Q2 core profit falls as domestic revenue drops

Telecom Italia (TIM) posted a 7.4% yearly fall in second-quarter core profits, with revenues in its key domestic market declining, Italy’s biggest phone group said on Tuesday.

Organic earnings before interest, tax, depreciation and amortisation (EBITDA) after lease costs fell to 1.43 billion euros ($1.69 billion) in the April-June period, versus an analyst consensus provided by the company of 1.44 billion euros.

Organic EBITDA strips out one-off items.

TIM said its core domestic revenues fell 1% year-on-year to 3.13 billion euros in the quarter, slightly above the company-provided analyst consensus of 3.11 billion euros.

Total revenues stood at 3.815 billion euros in the period, up 1% from the previous year, helped by operations in Brazil.

Last week, TIM, whose main shareholders are French media group Vivendi and Italian state lender CDP, pushed back a goal to stabilise core profits this year, citing higher costs linked to a partnership with streaming service DAZN to distribute Italy’s top-flight soccer matches. Reuters