Telecom Italia slightly raises FY guidance after H1 beat
MILAN, July 26 (Reuters) - Telecom Italia on Tuesday nudged up its guidance for domestic core earnings this year after reporting better-than-expected first-half results, helped by stronger performance from its mobile operations.
Italy's biggest phone group, controlled by French media group Vivendi, said it expects low single digit growth in domestic earnings before interest, tax, depreciation and amortisation (EBITDA) in 2016 on an organic basis. The company earlier guided to "at least stable" domestic EBITDA this year.
First-half EBITDA for the whole group, which also includes its Brazilian operations, rose 2.4 percent to 3.726 billion euros ($4.09 billion), above a consensus of analysts' forecasts of 3.62 billion euros provided by the company.
Sales at the former telecoms monopoly, which is seeking new sources of income as its traditional phone services lose appeal amid competitions from Internet rivals, fell 9.9 percent in the first six months to 9.096 billion euros, compared with an analyst consensus of 9.08 billion euros. ($1 = 0.9101 euros) (Reporting by Agnieszka Flak and Stefano Rebaudo)
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