Telecom Italia swings to loss due to write-down

Telecom Italia SpA (TIT.MI) late Thursday reported a third-quarter loss, citing an impairment, and said it wasn’t backing its 2018 debt-to-Ebitda guidance.

Italy’s largest telecom operator said it booked a net loss of 1.40 billion euros ($1.60 billion) in the third quarter compared with a net profit of EUR437 million the prior year quarter, as the company was hit by a EUR2 billion write-down on goodwill of the domestic business unit.

Revenue was down 4.1% at EUR4.67 billion.

Analysts had expected the company to post net profit of EUR443 million on the back of revenue of EUR4.71 billion, according to a FactSet-compiled consensus.

Earnings before interest, taxes, depreciation and amortization totaled EUR2.05 billion compared with analyst expectations of EUR2.11 billion.

Telecom Italia said it wasn’t backing its full-year debt-to-Ebitda guidance, citing a fine in Italy, an adverse competitive and regulatory environment in the domestic business and the weakening of exchange-rate in Brazil.

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