Telecom Italia's parent company shareholders lost out in 2015, as they bore the brunt of a 66.5 per cent fall in the company's overall net profit.
The company generated a profit of €657 million ($741 million) in 2015, compared to €1.9 billion in 2014. However, the proportion of that income attributable to Telecom Italia's parent company shareholders -- which the company reports as its consolidated net profit/loss -- slipped into the red during 2015, falling from a €1.3 billion profit in 2014 to a loss of €72 million in 2015.
In a statement, the company explained that the loss was caused by non-recurring charges and the negative impact of "bond buyback transactions carried out during the first part of the year". Telecom Italia added that those buybacks are a short-term pain for shareholders, noting that the benefits of the move "will be seen in subsequent financial years in the form of lower financial charges".
Group EBITDA fell 20.3 per cent year-on-year to €7 billion in 2015, while revenues fell 8.6 per cent to €19.7 billion -- which Bloomberg reported was just shy of the €19.9 billion analysts had predicted.
Despite the fall in revenue, Telecom Italia noted that its domestic business showed signs of recovery during 2015. While revenues in the first quarter of 2015 fell 3.3 per cent year-on-year, the decline in the fourth quarter was 1.1 per cent compared to the final three months of 2014.
The operator's domestic mobile service revenues for 2015 totalled €4.5 billion, some €91 million lower than 2014. However, its core domestic consumer mobile revenues grew by €29 million year-on-year to €3.5 billion.
Revenue for its fixed-line services fell €300 million year-on-year to €10.3 billion. Core domestic consumer revenues fell €112 million year-on-year to €3.7 billion.
The company said it plans to accelerate its investment in its domestic businesses in 2016 "with the primary aim of guaranteeing constant progress in operating performance and ensuring long-term growth for the group."
Report: Telecom Italia CEO backs Brazil; denies being asked to sell unit
Report: Vivendi CEO meets potential replacements for Telecom Italia chief Patuano
Xavier Niel sees Telecom Italia as consolidator rather than M&A target
European operators reject notion that they're trailing U.S., Asian carriers in 5G race
Vodafone Italy, TIM test VoLTE, RCS interoperability