Telecom Italia Updates Group Guidance
Telecom Italia lifted its guidance for revenue and core earnings for the 2022 to 2023 period. TIM expects it will be accelerated following an agreement with streaming service Dazn to boost its content offering.
The updated guidance forecast low to mid single-digit growth for organic service revenue in 2022 to 2023, compared with its previous low single-digit prediction. EBITDA was also revised at mid single-digit growth, compared with low to mid single-digit. Italian operator said the latest guidance was based on progress with its Beyond Connectivity plan, following agreements with content providers Dazn and Mediaset to distribute Serie A, Italy’s top-flight football division and the UEFA Champions League to TIM Vision.
A cash generation target of €4 billion was also confirmed over the period, while it is targeting a net debt EBITDA ratio of 2.6-times to 2023. The company’s dividend distribution policy stands at €1 for ordinary shares and €2.75 for saving shares, while in the shorter term it is targeting reducing mobile and fixed churn at domestic level. The company said in May it was confident of hitting its 2021 targets, also highlighting the Beyond Connectivity strategy to drive digital services, as well as agreements made in consumer and business.