After Telecom Italia disclosed that it experienced a drop of 7.7% on its core earnings from January to September of 2014, the company said last Friday that it’s seeing recovery signs turning into reality in the Italian market.
The significant drop in the core earnings of Telecom Italia was caused by the dragging down of the company’s domestic business plus a hold back in its second biggest market, Brazil.
Telecom Italia is the 9th largest phone company in Europe as measured by market value which sold its assets like its mobile towers that it used to cut its financial obligations and fund for the network investments that it considered necessary.
In a statement made by Chief Executive Marco Patuano, he said that the signs of recovery in the Italian market are now reality. He said this noting that the price war has ended and that over 150,000 customers have already made subscriptions to the company’s broadband offer.
The revenues of the company plummeted by 9.1% or 15.972 billion Euros and at by the 30th of September, its net financial obligations stood at 26.572 billion Euros.
Chief executive Marco Patuano said that he will move forward with plan of rolling out fiber networks in Italy and improving of its mobile network in Brazil as the 4 billion euro project that was presented in 2013. This will be pushed through without prejudicing the company’s efforts to keep on reducing its net debt.