TI cuts rev forecasts in final 09 results
Declining domestic revenues in 2009 has prompted Telecom Italia to cut its revenue forecasts for the 2010-12 period.
The telco expects revenue growth of just 1% in the next three years, compared to 2% for the 2009-11 period, and forecasts revenues in 2010 to be 2-3% lower than the €27.2 billion reported for 2009.
That 2009 revenue figure was itself down on 2008, falling 6.3% as the firm reduced its reliance on handset sales as a primary source of income during the year. The lower sales contributed to a €74 million drop in net income to €1.3 billion, as the firm failed to make up the difference through increased service revenues.
It made the predictions in its finalised 2009 results, released today after two delays to allow its TI Sparkle subsidiary to tackle legal action relating to an alleged fraud conducted with broadband provider Fastweb.
An investigation into the €300 million fraud forced TI to re-examine results dating back to 2005, leading to the delay in finalising 2009 results, as it had to ensure comparable figures from 2008 were still correct.
The telco set aside €507 million in its 2009 results to cover Sparkle’s legal costs.
It was finally cleared to approve the results when Fastweb and Sparkle reached a deal with Italian courts that meant they avoided being placed under special administration, on condition that Fastweb CEO Stefano Parisi and COO Alberto Calcagno stepped down from their posts.