Telecom Italia says earnings and debt goals on track after network sale
Adds details and background throughout
MILAN, Nov 13 (Reuters) -Telecom Italia (TIM) TLIT.MI said on Wednesday it remained on track to meet its earnings and debt targets following the sale of its fixed-line access network as it reported a 7.6% rise in core profit in the third quarter.
Earnings before interest, tax, depreciation and amortisation after lease costs (EBITDA-AL) came in at 943 million euros ($996.75 million) in the three months ending September.
That compared with an analyst consensus provided by the company of 947 million euros.
Boosted by the performance of its Brazil-listed unit TIM SA TIMS3.SA, earnings at Italy's former phone monopoly were also helped by a 2.1% rise in domestic revenue to 2.53 billion euros, in line with an analysts' forecast.
Financial targets announced earlier this year for the business emerging from the network disposal were all confirmed, including a rise in core earnings of between8% and 9% and for the group to reduce its debt to not more than two times its core earnings, to around 7.5 billion euros.
TIM said its debt goals for the year do not include proceeds stemming from the sale of its stake in the telecoms tower company INWIT INWT.MI, which will be finalised later this month.
Under pressure for years due to tough price competition in its home market, cash-burning TIM finalised in July the sale of its fixed-line network to KKR KKR.N for 18.8 billion euros, excluding some potential future payments.
Backed by Prime Minister Giorgia Meloni's right wing government, the deal slashed TIM's heavy financial burden by 14 billion euros.
But the stock has since flat lined at a price of around 0.22 euros as investors show little appetite for the revamped company.
($1 = 0.9461 euros)
Reporting by Elvira Pollina, editing by Alvise Armellini and Gavin Jones
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