Telecom Asia: Telecom Italia has announced its Q3 results, which beat analyst expectations with growht of 3.5%. Some mobile highlights:
–Italy: 31.5 million clients reached, of which 3.9 million UMTS. Market share at 40.3%
–Brazil: Leadership in GSM market confirmed with 21.5 million clients. Total market share rises to 25.1%. with 24.1 million clients
“The Rome-based telephone company said it earned 880 million euros ($1.12 billion) on revenue of 7.77 billion euros ($9.99 billion) in the third quarter…Revenue in the latest quarter was mainly driven by its European broadband and Brazilian mobile businesses, the company said.” The press release is here.
Also of note is the “very recent, unsolicited” offer to buy Tim Participacoes, the Brazilian unit that is driving revenue, and one of the largest in Brazil (Vivo is the largest, with around 30 million customers). Telecom Italia CEO Riccardo Ruggiero refused to give details of the proposal, such as who it was from or for how much but Telecom Italia said in a statement that “an eventual sale of Tim Brasil would ensure the financial stability needed by Telecom Italia to pursue its strategy and upgrade its network”.
Analyst Walter Piecyk at Pali Research cites Italian press Corriere della Sera as saying the two offers for TIM Brazil are from America Movil and a joint venture of Brazil Telecom and Telefonica, the two large players in the region. “The report indicates the two offers are worth about $7.7 billion…If the reported offer of $7.7 billion is for Telecom Italia’s equity stake only it would imply a 13% premium over the current price. There are no details for what the split in value might be between the share classes or if the offer includes the assumption of over $800 million of net debt.”
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