May 6 (Reuters) - Telecom Italia (TIM) posted a steeper than expected 2.7% drop in its core profit on Wednesday, partly due to issues related to the transition of some contracts with its virtual network operators.
TIM Brasil and TIM Domestic enterprise were the main driver of growth, recording revenues up respectively 6.4% and 3.2% from the previous year, while domestic consumer revenues were down 3%.
State-owned Poste Italiane made a 10.8 billion euro ($12.7 billion) cash-and-share offer to bring TIM back into state hands on late March.
o Q1 group EBITDA after lease was 794 million euros, below the company-provided consensus of 802 million euros
o Q1 group revenues totalled 3.32 billion euros, in line with a consensus provided by the company
o Adjusted net debt after lease at March-end stood at 7.29 billion euros
o Company to invest around 500 million euros in infrastructure and assets related to digital sovereignty between 2026 and 2028
o Telecom Italia confirmed its plan to launch in 2026 a premium-priced on-demand mobile service for high-performance connectivity including at big events
(Reporting by Anna Uras; Editing by Matt Scuffham)
