Telecom Italia Raises Cost-Cut Target to $1.8 Billion by 2018
- The savings will come from operational costs, capital spending
- Telecom Italia shares rise as much as 4%, most in 2 weeks
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Telecom Italia SpA almost tripled its target for reducing expenses to 1.6 billion euros ($1.8 billion) by 2018 in a move pushed by new Chief Executive Officer Flavio Cattaneo, who aims to improve profitability at the former state-owned phone carrier. The shares rose the most in more than two weeks.
The cuts will include 800 million euros in operating costs and 800 million euros in capital spending, the company said. The carrier’s previous cost-cut target was 600 million euros.