Latest news with #TelecomItalia
Reuters
21-05-2025
- Business
- Reuters
Italy's CDP, Macquarie at odds over future of loss-making Open Fiber, sources say
MILAN, May 21 (Reuters) - Italian state lender CDP and its partner Macquarie ( opens new tab are at odds over the future of their loss-making fibre network operator Open Fiber, sources familiar with the matter told Reuters. The standoff risks slowing down efforts by Italy's conservative government to combine Open Fiber with larger rival FiberCop, the network unit Telecom Italia ( opens new tab sold last year to a pool of investors comprising KKR (KKR.N), opens new tab and Italy's Treasury. CDP, which owns 60% of Open Fiber, is keen to merge the operator's assets with those of FiberCop to create a wholesale-only telecommunications network provider under state control. But in the view of Australian fund Macquarie, Open Fiber needs to spin-off fibre assets in the most densely populated and profitable areas to ensure a smooth antitrust review for any combination with FiberCop, one of the sources said. Macquarie, which spent 2.12 billion euros ($2.4 billion) to buy a 40% stake in Open Fiber in 2021, would be ready to take over those assets, the same source said. Macquarie declined to comment. However, CDP is not willing to hand over those areas as they represent Open Fiber's most valuable assets and are key to ensuring that the company is valued fairly in any deal with FiberCop, according to a second source. Industry experts said those areas could be valued at 4-6 billion euros, including debt. The structure of any potential deal needs to be negotiated yet and may emerge in a one-year timeframe, the second source said. Any potential combination between FiberCop and Open Fiber needs to be cleared by European Union antitrust authorities. CDP is confident Brussels could demand the sale of only a portion of Open Fiber's network assets in the most densely populated areas to preserve competition, the second source said. FiberCop was valued at 18.8 billion euros in the KKR deal, when including some 9 billion euro in debts. CDP declined to comment. Open Fiber, which Italy's government tasked with rolling out fibre optic cables across the country almost a decade ago, posted a 364 million euro loss last year and forecast reaching a positive cash flow in 2028 at the latest. ($1 = 0.8817 euros)
Reuters
08-05-2025
- Business
- Reuters
Telecom Italia CEO says tie-up with Iliad remains possible
MILAN, May 8 (Reuters) - Telecom Italia (TIM) ( opens new tab will continue to explore the possibility of a tie-up with French-owned rival Iliad as it remains convinced that consolidation is needed to make Italy's telecoms sector sustainable, its boss said on Thursday. "We will continue to pursue the possibility of a deal with Iliad," TIM Chief Executive Pietro Labriola told analysts in a call after it released quarterly earnings. However, he added that it would not be a nightmare for TIM if an alternative tie-up happened between Iliad and rival Wind Tre.
Business Insider
08-05-2025
- Business
- Business Insider
Telecom Italia downgraded to Neutral from Buy at New Street
New Street downgraded Telecom Italia (TIIAY) to Neutral from Buy with a EUR 0.36 price target Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Reuters
07-05-2025
- Business
- Reuters
Telecom Italia first-quarter core profit up 5.4%, debt rises
Summary Companies Profit after lease costs 815 mln euros vs forecast 821 mln Debt edges up to 7.5 bln euros from 7.3 bln at end-December Company confirms financial targets MILAN, May 7 (Reuters) - Telecom Italia ( opens new tab posted on Wednesday a 5.4% rise in first-quarter core earnings, slightly below expectations, as debt edged higher and cash flow was negative. Earnings before interest, taxes, depreciation and amortisation after lease costs at Italy's biggest telecoms group rose to 815 million euros ($926 million), against analysts' consensus forecast of 821 million euros in a company poll. Debt after lease costs was 7.5 billion euros at the end of March, up from 7.3 billion euros at Dec. 31, while equity free cash flow was a negative 198 million euros, weighed down by some deferred payments from the previous quarter and in line with analyst expectations. The company posted a 124-million-euro net loss in the period, down from a 400-million-euro loss in the same period last year, and confirmed financial targets provided in February, including the return to cash generation this year. TIM, the heir to Italy's phone monopoly, is set to return to state-backed hands with financial conglomerate Poste Italiane ( opens new tab replacing France's Vivendi ( opens new tab as its single largest investor with a 24.8% stake. Having sold its prized landline network last year, in a move aimed at slashing debt, TIM is expected to play a role in the long-awaited consolidation of Italy's telecoms sector, which has been under pressure for years amid stiff price competition. ($1 = 0.8799 euros)
Reuters
14-04-2025
- Business
- Reuters
Italy-led consortium agree deal to buy Telecom Italia's subsea unit
Summary Companies Sale part of Telecom Italia's asset disposal strategy Deal includes potential price adjustment based on profit targets Sale expected to be finalised by the end of 2025 MILAN, April 14 (Reuters) - A consortium led by the Italian Treasury has reached an agreement to buy Telecom Italia (TIM) ( opens new tab submarine cable business Sparkle, in a deal valuing the unit at 700 million euros ($793.80 million) including debt, TIM and the government said on Monday. Sparkle is deemed of strategic importance by Italian authorities, given its 600,000 kilometres of cable network, which transmits information between countries in Europe, the Mediterranean region and the Americas. The Treasury jointly bid with Retelit, a fibre optic operator, which is controlled by Spanish fund Asterion. The sale of Sparkle is part of a round of asset disposals aimed at reviving the former phone monopoly which has struggled with fierce price competition in its home market. The deal, which is expected to be finalised by the end of this year, includes a potential price adjustment in case Sparkle fails to meet some of its core profit targets this year, TIM and the government said in separate statement. ($1 = 0.8818 euros)
