November 14, 2024 07:56 GMT
COMMUNICATIONS: Telecom Italia Q3 Look Broadly Stable; Guidance Confirmed
COMMUNICATIONS
Ba3[P]/BB/BB
Results look slightly behind company-provided consensus albeit the underlying trends look intact with a tick lower in leverage and management affirming the year-end leverage target of <2x. FCF remains weak though CapEx was better than expected.
- Revenue +3.2% YoY (Service revenue +4.3% YoY, Domestic +2.1% YoY, Brazil +6% YoY) vs. c+3.6%. 9M24 +3.4% YoY
- EBITDAal +7.6% YoY (Domestic +7.2% YoY, Brazil +8.5% YoY) vs. c.+8.1%. 9M24 +11.1% YoY.
- 9M24 CapEx of EUR 1334mn vs. EUR 1423mn in 9M23. 9M24 opFCF of EUR 1.7bn from EUR 1.6bn in 9M23. 9M24 eFCFal of EUR -368mn from EUR -238mn in 9M23.
- Pro-forma leverage of 2.3x from the 2.4x seen at Q2.
- Guidance confirmed. Inwit stake sale closure expected on 29 Nov. Nothing of note on Sparkle.
- “The expected evolution of the net financial position in the last quarter of the year will allow the Group to achieve the announced deleverage target, with a ratio of Adjusted Net Financial Debt After Lease to organic EBITDA After Lease3 less than or equal to 2x.” [target doesn’t include Inwit stake sale incomes].
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