4Q20 Signals TIM's Successful Transformation
4Q20 performance is an indicator that the transformation efforts are beginning to show results, Telekom Italia said in a financial report. Net profit for the period surged on the back of a tax realignment.
The operator said in a statement that it had spent two years streamlining its organisational structure, optimising processes and undergoing a major repositioning of the business with the creation of new development opportunities, thanks to key strategic agreements. It said the commercial strategy implemented since 2018 had led to a stabilisation of service revenue in the fixed-line segment during 4Q20, while the first signs of rationality in the mobile market were felt.
Overall revenue amounted to €4.1 billion, down 2.1 percent year-on-year, while service revenue dipped 1.2 percent to €3.7 billion. Domestic revenue hit €3.4 billion, down slightly from €3.6 billion, while the figure in Brazil fell 2 percent to €725 million.
The main bright spot for the quarter was net profit of €6 billion, up from €64 million, mainly due to a domestic tax realignment. Excluding this effect, net profit would have been €1.3 billion. Net financial debt fell by €4.3 billion to €23.3 billion, while the number of mobile lines stood at 30.2 million, down slightly from 30.9 million. The company confirmed a dividend of €0.01 per ordinary share for 2021.