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Telecom Italia Full-year Loss Narrows

Italian telecom company Telecom Italia S.p.A (TI, TIAOF) on Thursday reported a loss for fiscal year 2012 that narrowed from last year on lower goodwill writedowns. However, revenues for the year declined from the prior year, reflecting lower revenues at the company's domestic unit.

The company's net loss for fiscal 2012 was 1.63 billion euros or $2.1 billion, compared to net loss of 4.81 billion euros for the previous year.

The latest year's results include goodwill writedowns of 4.43 billion euros, compared to writedowns of 7.35 billion euros in 2011. The company noted that the write-down of goodwill that was created following the Olivetti/Telecom Italia deals and the purchase of the Telecom Italia Mobile minorities "was made necessary by the persisting recessionary tensions and the challenging global macroeconomic climate".

Excluding items, normalized profits for the year declined to 2.4 billion euros from 2.5 billion euros in the prior year.

Earnings before interest, tax, depreciation and amortization or EBITDA for the year declined 4 percent to 11.65 billion euros from 12.17 billion euros in the previous year.

Revenue for the year declined 2 percent to 29.50 billion euros from 29.96 billion euros in 2011. The decline in revenues is primarily due to 6 percent lower revenues at the company's domestic business unit, offset by revenue growth at the Argentina and Brazil business units.

The company said its board will propose dividend distribution of 2 euro cents per ordinary share and 3.1 euro cents per savings share, for a total dividend payout of 454.4 million euros.

Looking ahead to fiscal 2013, Telecom Italia maintained its forecast for revenues to be stable year-over-year, low-single digit percentage reduction in EBITD and adjusted net financial position of less than 27 billion euros. The company had earlier provided the outlook on February 8.

The company's board of directors has convened a shareholders' meeting for April 17.

TI closed Thursday's trading at $7.51, up $0.23 or 3.16 percent on a volume of 319,386 shares.

In Milan, the shares closed Thursday's trading at 0.58 euros, up 0.02 euros or 2.94 percent on a volume of 82.11 million shares.

by RTTNews Staff Writer

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