Telecom Italia SpA

Overview Key strengths Key risks Strong and well-established position in Italy?s telecom market, enjoying a market share of 38.4% in the fixed market (Copper, fixed wireless access, fiber to the cabinet, and FTTH) by total lines and 27.3% in mobile by total subscribers. Competing in a highly competitive Italian market at the lower end of the mobile market and the high end of the fixed market. Strengthened position in Brazil after acquiring part of Oi?s mobile business. Lower profitability level in comparisons to other telecom operators, due to light-asset model in the domestic fixed market. Commitment to a relatively moderate capital structure Material exposure to Brazil (about 50% of reported EBITDA) which could lead to volatile consolidated credit metrics. Near-term

...We think the group's considerable size and strong footing in its domestic market and Brazil underpinning its fair business profile. Following the disposal of NetCo, the group retains considerable size, with reported revenues exceeding 14 billion and reported EBITDA of over 4 billion. This reflects TIM's sizable consumer and enterprise operations domestically as well as...

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