Telecom Italia Q1 Profit Falls As Revenue Drops 12%, Stock Down - Update

(RTTNews) - Telecom Italia Group (TI, TIAOF.PK) Tuesday posted a fall in profit for the first quarter, as revenues declined close to 12 percent from the prior year. The stock dropped over 4 percent.

Profit attributable to owners of the parent fell to 222 million euros ($304.2 million) from 364 million euros last year.

Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA fell 8.4 percent to 2.2 billion euros. EBITDA margin was 42.4 percent compared to 40.8 percent last year.

In organic terms, EBITDA fell 5.7 percent and EBITDA margin was up 0.2 percentage points.

Revenues fell 11.9 percent to 5.19 billion euros from 5.89 billion euros recorded last year. Consolidated revenues fell 6.2 percent in organic terms.

Domestic revenues fell 8.3 percent to 3.728 billion euros. The unit includes the Olivetti group, Core Domestic and International Wholesale.

Revenues in Brazil declined 18.8 percent to 1.451 billion euros. Mobile Average Revenue Per User or ARPU was 18.0 reais compared to 18.5 reais in 2013.

The company noted that the first months of the year have seen greater dilution of ARPU on traditional services on the domestic market.

The stock fell 4.3 percent to 0.885 euro.