(RTTNews) - TIM S.p.A., also known as Telecom Italia, (TIAOF.PK, TI), reported Wednesday that its second-quarter net result attributable to the shareholders of the parent company plunged 69.4 percent to 118 million euros from 386 million euros last year.
EBIT fell 57.7 percent to 509 million euros from 1.20 billion euros last year. EBIT margin was 13.4 percent, down from 26.6 percent a year ago.
Group EBITDA was 1.66 billion euros, down 32 percent on a reported basis and down 6.4 percent organically.
Total revenues came to 3.8 billion euros, down 16.1 percent from last year's 4.52 billion euros. Organic revenues declined 10.1 percent. The results were hurt by the reduced footfall in shops during the lockdown and by the lower tourist flows to and from Italy, which led to lower volumes of roaming traffic.
In the second quarter, service revenues were 3.6 billion euros, down 8.2 percent.
Looking ahead, the company noted that despite a short-term decline, a positive effect on the group's accounts is expected in the medium to long term following the faster adoption of digital services.
The company expects organic service revenues to be slightly lower, in the mid-single-digit, in 2020 and slightly higher, in the low single-digit, in 2021-2022.
Organic After Lease EBITDA is expected to be slightly lower, in the mid-single-digit, in 2020 and slightly higher, in the low to mid-single-digit, in 2021-2022.
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