Telecom Italia Reports 6.3% Decline in Net Profit
Telecom Italia said Thursday that full-year net profit fell 6.3% on declining margins and tighter competition in the domestic wireline market.
Italy's largest telecommunications operator said 2006 net profit stood at 3 billion euros ($3.9 billion) from 3.2 billion euros a year earlier. The result was slightly above the 2.96 billion euros ($3.88 billion) average estimate of ten analysts polled by Dow Jones Newswires.
It said full-year revenue rose 4.5% to 31.3 billion euros ($41 billion) from 29.9 billion euros in 2005, mainly driven by European broadband and Brazilian mobile.
Italy's former monopoly Thursday confirmed its dividend policy, proposing a 2006 dividend of 0.14 euros ($0.18) a share, unchanged from a year before.
Telecom Italia, which is coming off a management shakeup earlier this year, is schedule to unveil its three-year business plan on Monday.