MILAN (Reuters) – Telecom Italia on Thursday said it is no longer able to confirm its net debt to core earnings target for the end of the year, citing adverse competitive and regulatory environment at home and the weakening of the exchange rate in Brazil.
Italy’s biggest phone group, whose largest shareholder is French media group Vivendi, had previously guided for a net debt to EBTIDA ratio of around 2.7 times this year.
The company said comparable earnings before interest, tax, depreciation and amortisation (EBITDA) in the first nine months fell 2.9 percent to 6.03 billion euros (5.23 billion pounds), roughly in line with an analyst consensus provided by the company of 6.02 billion euros.
Sales in the period fell 3.1 percent to 14.22 billion euros, in line with expectations.
Adjusted net financial debt stood at 25.19 billion euros at the end of September.
(Reporting by Agnieszka Flak)