Telecom Italia’s Record Plunge Shows Skepticism on Debt Outlook

Shares tumble 24% after guidance for growth and debt reduction
Company details first business plan since landline sale

A TIM mobile phone shop in Milan, Italy.
Photographer: Camilla Cerea/Bloomberg

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By Daniele Lepido

March 7, 2024 at 1:11 PM UTC

Updated on

March 7, 2024 at 7:27 PM UTC

This article is for subscribers only.

Telecom Italia SpA’s shares plunged the most ever on Thursday as investors expressed skepticism about the phone carrier’s plans for reducing debt.

The company said on Wednesday it foresees reducing debt to 1.6 to 1.7 times Ebitda from its current ratio of 3.8 times on a pro forma basis. Analysts said the debt ratios weren’t consistent with the company’s previous guidance to achieve certain debt targets in 2024.