Telecom Italia Posts Full-Year Loss on Bond Transactionsby
Company in February had seen a profit of 150 million euros
CEO Patuano’s position said to be under review by Vivendi
Telecom Italia SpA, Italy’s biggest phone carrier, reported a 2015 loss after a negative impact of bond transactions carried out during the first part of the year.
The net loss was 72 million euros ($82 million), compared with net income of 1.35 billion euros in 2014, the Milan-based company said Thursday in a statement. Telecom Italia in February had projected a full-year profit of about 150 million euros.
Shares of Telecom Italia rose 1.4 percent to 1.03 euros at 10 a.m. in Milan, giving the company a market value of about 18.9 billion euros ($21.3 billion).
Sales fell 9 percent to 19.7 billion euros. Analysts had predicted 19.9 billion euros, the average of estimates compiled by Bloomberg. Telecom Italia confirmed it will take a 1.1 billion euro charge linked to staff costs and other provisions.
Telecom Italia Chief Executive Officer Marco Patuano’s position is being reviewed by Vivendi SA, the phone operator’s biggest investor, because the French media company is becoming impatient with his leadership after investing about 3.5 billion euros, people familiar with the matter said earlier this month.
The company also said directors asked managed to review the offers received for Telecom Italia’s stake in towers unit Inwit SpA. The phone company withheld a common share dividend but will pay a savings stock dividend of 2.75 cents a share.