(Reuters) -Telecom Italia (TIM) reported a 5% increase in its core earnings for the first half of the year on Tuesday, as its fast-growing Brazilian business offset sluggish growth in Italy.
The company named Piergiorgio Peluso as CFO to replace Adrian Calaza, confirming an earlier report. Peluso, CFO of motorway operator Autostrade per l’Italia, had previously served as TIM CFO for seven years until 2019. His appointment is effective as of November 6.
TIM added that its Chief Public Affairs and Security Officer Eugenio Santagata had resigned, effective immediately.
According to an earlier report, Italian shipbuilder Fincantieri is poised to appoint Santagata to head its defence division.
WHY IT’S IMPORTANT
TIM, the heir to Italy’s phone monopoly, this year returned to state-backed hands with financial conglomerate Poste Italiane replacing France’s Vivendi as its single largest investor with a 24.8% stake.
Having sold its prized landline network last year, in a move aimed at slashing debt, TIM is expected to play a role in the long-awaited consolidation of Italy’s telecoms sector, which has been under pressure for years amid stiff price competition.
BY THE NUMBERS
Italy’s biggest telecoms group said its EBITDA after leases rose to 1.7 billion euros ($2.0 billion) in the first half of the year. Around 0.8 billion euros came from its Brazilian business, up 6.1% from the year before.
Its domestic EBITDA after leases came in at 1 billion euros, up 4.2% from the year before.
Total revenues for the semester came in at 6.6 billion euros.
TIM’s net debt after leases stood at 7.5 billion euros as of June 30.
TIM confirmed the annual financial targets it had provided in February, including a return to cash generation and a 7% growth in group’s core profit.
($1 = 0.8655 euros)
(Reporting by Philippe Leroy Beaulieu, Elvira Pollina; Editing by Matt Scuffham)
