Telecom Italia Releases Financial Targets Under New Strategic Plan

By Patrick Costello

Telecom Italia SpA (TIT.MI) released late Thursday new financial targets as part of Chief Executive Luigi Gubitosi's strategic plan for the years 2019 to 2021 to boost capital returns and strengthen cash-flow generation.

The Italian telecoms company expects organic group service revenue will see low-single-digit growth for the years 2020 and 2021 after posting a low-single-digit decrease in 2019, it said.

Organic group earnings before interest, taxes, depreciation and amortization should likewise see a low single-digit increase in 2019, while low single-digit growth is targeted for both 2020 and 2021, Telecom Italia said.

The company said it expects to generate around 3.5 billion euros ($3.97 billion) in equity free cash flow through 2021, with adjusted net debt slated to fall to around EUR22 billion by 2021. Domestic capital expenditures should amount to around EUR3 billion per year through 2021.

Telecom Italia said it has received an additional nonbinding offer and started exclusive negotiations for a sale of its Persidera media subsidiary and also entered discussions for a network-sharing partnership with Vodafone Italia.

Discussions have also begun with rival network operator Open Fiber to explore "all possible options", including a full business combination merging the companies' network assets, Telecom Italia said.

Write to Patrick Costello at [e-mail].

(END) Dow Jones Newswires

February 22, 2019 05:38 ET (10:38 GMT)

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