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Telecom Italia Q1 profit falls 4.5% to $616m

European broadband revenue fell 4.6% to $410m

By CBR Staff Writer

Telecom Italia has reported a 4.5% decline in net income to E463m ($616m) for the first quarter 2009, compared to E485m ($645.3m) in the year-ago quarter, on revenue down 7.1% at E7.4 billion ($9.8 billion).

Operating income fell 10.2% to E1.35 billion ($1.8 billion), while EBITDA fell 5% to E2.8 billion ($3.7 billion).

The company said domestic revenue decreased by 4.3% to E5.35 billion ($7.1 billion). European broadband revenue fell 4.6% to E308m ($410m), and Mobile Brazil revenue fell 13.3% to E1.06 billion ($1.4 billion). Revenue from media, Olivetti and other activities fell 40.3% to E139m ($185m).

Franco Bernabe, CFO at Telecom Italia, said: The trend in revenues reflects the impact of sales networks restructuring, already announced in the Strategic Plan, and the effects of commercial policies tailored to customers who, particularly in the mobile business, showed greater care in telecommunications spending, in the current economic climate.

The group confirmed its Q2 2009 profitability and cash generation targets announced in late 2008. It expects domestic business unit organic EBITDA to be in the range of E9.9 billion ($13.2 billion) to E10 billion ($13.3 billion).

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