Telecom Italia Quarterly Earnings Advance on Cost Reductions
- Italian carrier predicts domestic full-year earnings growth
- Domestic mobile business shows improved trend, CEO says
This article is for subscribers only.
Telecom Italia SpA posted the steepest increase in domestic quarterly earnings in seven years in a sign that Chief Executive Officer Flavio Cattaneo’s push into more lucrative broadband services and accelerated cost cuts are starting to pay off. The stock rose the most in nine months.
Earnings before interest, taxes, depreciation and amortization rose about 25 percent to 2.01 billion euros ($2.2 billion) in the second quarter, the former Italian phone monopoly said in a statement late Tuesday. The number was bolstered by the reversal of a 66 million-euro provision for employee bonuses that weren’t paid. In organic terms, the increase was 4 percent, the company said.