Telecom Italia to assess resuming dividends in plan update in February
Adds details in paragraph 4-5; 7-13
By Elvira Pollina
MILAN, Nov 14 (Reuters) -Telecom Italia (TIM) TLIT.MI will be better able to assess whether it can resumedividend payments in February, when it updates its strategy following the sale of its fixed-line network, the head of Italy's biggest telecoms group said.
"With the presentation of the plan 2025-2027," Pietro Labriola told analysts during a post-results call on Thursday.
"We will have much more room to give details about a possible return to the remuneration of the different (categories of) shareholders."
Labriola also suggested TIM could lift next year's targets, saying in the new business plan there could also be "room to improve in different areas".
Milan-listed TIM shares extended gains after Labriola's remarks to rise by around 6% by 1240 GMT. The stock is down nearly 21% from the beginning of this year.
TIM said it remains 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.
The former phone monopoly finalised in July the sale of its landline grid to KKR KKR.N for 18.8 billion euros, a deal aimed at drastically cut its debt pile.
Since 2021, the company, whose earnings and finances have been under pressure for years, has suspended any payments to shareholders, including those holding savings shares, which command a minimum dividend.
TIM CEO said that proceeds from extraordinary operations, including a number of disposals currently under way, could speed up the decision to return to rewarding investors.
He also cited proceeds stemming from an ongoing lawsuit with the Italian government, which earlier this year was ordered by a court to pay TIM 1 billion euros.
Labriola also said that talks with a Treasury-led consortium to sell its submarine cable business Sparkle were progressing.
Finally, he expressed confidence that a merger between its spun-off network business FiberCop and rival Open Fiber could take place "sooner rather than later."
The long-awaited deal would allow TIM to pocket an earnout payment of 2.5 billion euros from KKR.
Reporting by Elvira Pollina; Editing by Gianluca Semeraro and Valentina Za
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
