Telecom Italy, plan to accelerate investments in 2018, pointing to efficiency gains – Reuters Italy

MILAN (Reuters) – Telecom Italy accelerates investment in Italy, increasing by 2 billion euro to 12 billion target over three years in the 2016-2018 plan, compared to the 2015-2017 plan and points to an increase in EBITDA from home next year.

In Brazil , where it controls TIM Brasil, the goal is an increase in market share and the Ebitda margin, while investments are expected by 14 billion reais.

In a Telecom statement said that over the Plan will also , identified for the group additional growth opportunities of the financial targets and to improve efficiency, including through the further reduction of operating costs.

The telephone company, which has the media group Vivendi as a shareholder, envisages a strengthening of the position on multimedia entertainment, including in the video field activities, music, gaming and publishing.

The investment in fiber optics in Italy rose to 3.6 from 3 billion of the previous plan.

In 2018, 84% of the population will be reached by the optical fiber and 98% by 4G. The ratio of net debt to adjusted EBITDA reported is expected in the third, compared to 2.5 the previous plan at the end of 2017, but because the next few years will be weighed down by 2 billion “resulting from accounting reclassifications due to the application of some IAS standards non-cash items. ”

The action on the debt will be obtained thanks to the announced sale of a share of Inwit, to strengthen capital by 1.3 billion euro resulting from the redemption of convertible bonds and the completion of the sale of Telecom Argentina.

The plan presented last year to 2017 predicted that 75% of population was achieved by the optical fiber and over 95% by 4G.

The cumulative Capex in Brazil amounted to 14 billion reais (over 4 billion euro) in Italy to 10 billion euro, of which 3 billion for the optical fiber. More …