Telecom Italia H1 profits hit by regulatory risk provisions
MILAN Aug 7 (Reuters) - Core earnings at Telecom Italia fell 16.4 percent in the first half, as 399 million euros ($436 million) in one-off charges to cover for regulatory and legal risks added to lower revenues in key markets Italy and Brazil.
Italy's biggest phone group said on Friday earnings before interest, tax, amortisation and depreciation (EBITDA) was 3.633 billion euros, below a 3.755 billion euros analyst consensus estimate.
Sales at the former telecoms monopoly, which is seeking new sources of income as its traditional phone services lose appeal amid competition from Internet rivals, fell 4.3 percent to 10.097 billion euros, matching analyst expectations.
The group said operating performance would gradually improve in Italy and Brazil this year, as investments to roll out faster networks rose and TV deals were boosting broadband demand. ($1 = 0.9159 euros) (Reporting by Danilo Masoni; editing by Francesca Landini)
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