UPDATE 2-Telecom Italia sees recovery as domestic price war hurts Q1

martes 13 de mayo de 2014 06:13 GYT
 

* EBITDA down 8.4 pct to 2.20 bln euros vs consensus 2.21 bln

* Revenues down 11.9 pct to 5.19 bln euros vs consensus 5.22 bln

* CEO expects "progressive acceleration" in recovery

* Shares down 2 pct, as Italy mobile trend disappoints (Adds analyst comment, details on mobile trends)

By Danilo Masoni

MILAN, May 13 (Reuters) - Telecom Italia said on Tuesday it expected a gradual recovery in earnings this year after posting an 8.4 percent fall in first-quarter core profit to reflect declining sales in Italy and a weaker currency in Brazil.

Its mobile business in Italy was weaker than some had expected due to a fierce price war with rivals including Vodafone and Vimpelcom's Wind, while its messaging services are threatened by online rivals, such as Facebook Inc's WhatsApp.

By 0936 GMT, shares in Italy's largest telecoms company, fell 2.7 percent at 0.900 euros, underperforming an 0.6 percent fall in the European telecoms index.

"EBITDA was slightly below our estimates, which incorporated a better trend of domestic margins with a slower decline in sales from (mobile business) Tim Italia," said ICBPI analyst Stefano Vulpiani in a note.   Continuación...