Telecom Italia Confident on Annual Goals
Telecom Italia is confident it will achieve its targets for 2021, despite revenue remaining flat at €3.8 billion in the first quarter. The operator said that the acceleration of digital transformation and strategic agreements were reached in the previous quarter.
TIM highlighted a new Beyond Connectivity strategy, covering the period to end-2023, as a main driver of digital services, and agreements made in the consumer and business markets. During the period it completed an acquisition of Italian ICT services provider Noovle and a deal covering its fixed broadband unit FiberCop. Telecom Italia also noted stabilisation in its fixed service revenue and greater satisfaction and loyalty in the mobile market, with churn at its lowest level in 14 years.
TIM recorded a 30 percent growth in revenue linked to cloud and IT services, driven by a partnership with Google Cloud. Service revenue rose in Brazil due to a strong commercial performance in the customer base and average price fields. Telecom Italia booked a decline of nearly 9 percent year-on-year in operating costs in its home market. Domestic revenue was flat at €3.1 billion, with Brazil up 3 percent to €658 million. Overall service revenue was €3.4 billion, down 2.5 percent. It fell to a net loss of €216 million compared with a €560 million profit, citing costs associated with job cuts planned for the current quarter.