Telecom Italia Releases Financial Targets Under New Strategic Plan
February 22 2019 - 5:53AM
Dow Jones News
By Patrick Costello
Telecom Italia SpA (TIT.MI) released late Thursday new financial
targets as part of Chief Executive Luigi Gubitosi's strategic plan
for the years 2019 to 2021 to boost capital returns and strengthen
cash-flow generation.
The Italian telecoms company expects organic group service
revenue will see low-single-digit growth for the years 2020 and
2021 after posting a low-single-digit decrease in 2019, it
said.
Organic group earnings before interest, taxes, depreciation and
amortization should likewise see a low single-digit increase in
2019, while low single-digit growth is targeted for both 2020 and
2021, Telecom Italia said.
The company said it expects to generate around 3.5 billion euros
($3.97 billion) in equity free cash flow through 2021, with
adjusted net debt slated to fall to around EUR22 billion by 2021.
Domestic capital expenditures should amount to around EUR3 billion
per year through 2021.
Telecom Italia said it has received an additional nonbinding
offer and started exclusive negotiations for a sale of its
Persidera media subsidiary and also entered discussions for a
network-sharing partnership with Vodafone Italia.
Discussions have also begun with rival network operator Open
Fiber to explore "all possible options", including a full business
combination merging the companies' network assets, Telecom Italia
said.
Write to Patrick Costello at patrick.costello@dowjones.com.
(END) Dow Jones Newswires
February 22, 2019 05:38 ET (10:38 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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