Telecom Italia to grow core profits from 2020, to explore all options on network

FILE PHOTO - Telecom Italia's logo at its headquarter in Milan, Italy, May 25, 2016. REUTERS/Stefano Rellandini - Copyright Stefano Rellandini(Reuters)

By Reuters

Published on 21/02/2019 - 21:34 GMT+1

MILAN (Reuters) - Telecom Italia (TIM) on Thursday pledged to accelerate cost cutting, increase shareholder returns and grow core profits from next year in the first strategy plan under new Chief Executive Luigi Gubitosi.

Italy's biggest phone group said group organic earnings before interest, depreciation and amortisation (EBITDA) and service revenues would decrease by a low single digit this year, but grow at a low single digit rate in 2020 and 2021.

TIM said it had already launched several initiatives to unlock value at the former state phone monopoly, including negotiations with smaller broadband rival Open Fiber an "all possible options including a full business combination on fixed network".

(Reporting by Agnieszka Flak; editing by Francesca Landini)