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Telecom Italia Q2 2007 Earnings Call TranscriptJul. 25, 2007
at MarketWatch.com (Nov 11, 2011)
at MarketWatch.com (Aug 1, 2011)
at MarketWatch.com (May 24, 2011)
at CNBC.com (Apr 5, 2011)
at MarketWatch.com (Mar 21, 2011)
at CNBC.com (Sep 27, 2010)
at MarketWatch.com (Jun 2, 2010)
at MarketWatch.com (May 26, 2010)
at MarketWatch.com (May 11, 2010)
at MarketWatch.com (May 11, 2010)
at MarketWatch.com (May 11, 2010)
TI vs. ETF Alternatives
Tuesday, Apr 12:18 PM
Friday, Mar 289:50 AM
Friday, Mar 289:50 AM| 1 Comment
- InvenSense (INVN +3%) has been upgraded to Buy by Roth.
- Ciena (CIEN -1.4%) and JDS Uniphase (JDSU -0.4%) have been cut to Sector Perform by RBC. MKM upgraded JDS a week ago.
- Veeco (VECO +4.6%) has been upgraded to Buy by CLSA. UBS upgraded shares earlier in March.
- Avago (AVGO +1.9%) has been started at Outperform by Pac Crest.
- Telecom Italia (TI +2.2%) has been upgraded to Buy by Berenberg.
- Integrated Silicon (ISSI +3.4%) has been started at Buy by B. Riley.
Wednesday, Mar 1911:26 AM
Wednesday, Mar 1911:26 AM| Comment!
- In spite of stiff protests from the region's carriers, an EU parliamentary committee has voted 30-12 (with 14 abstentions) in favor of ending mobile roaming fees (for voice, data, and SMS) by Dec. 15, 2015 for users traveling between EU countries. An exception exists for instances of "anomalous or abusive usage of retail roaming services."
- The committee has also backed creating net neutrality rules prohibiting carriers from blocking or slowing specific Internet services. The vote comes after the FCC said it would draft new U.S. net neutrality rules following a court ruling shooting down older ones.
- The loss of intra-continental roaming revenue stands to further pressure the bottom lines of European carriers, who have already been struggling to cope with slumping voice/SMS activity.
- One silver lining: The EU's roaming efforts are part of a broader push to create a common European telecom market, something likely to spur further consolidation.
- Affected carriers: VOD, ORAN, TEF, TI, DTEGY, BT
Friday, Mar 73:37 AM
Friday, Mar 73:37 AM| Comment!
- Telecom Italia's (TI) net loss narrowed to €674M ($927.9M) in 2013 from €1.63B a year earlier, due to a smaller impairment on the goodwill of its domestic operations.
- TI would have made a net profit of €1.5B had it not been for a €2.2B goodwill charge taken in H1.
- Consolidated revenue declined an organic 5.2% to €23.4B.
- EBITDA fell €804M to €9.7B.
- Will offer to repurchase €500M in bonds.
- Net debt drops €1.5B to €26.8B.
- TI will pay a dividend of 0.0275 ($0.038) a piece on savings shares but nothing on ordinary shares.
- Shares are -1.2% in Milan. (PR)
Monday, Jan 611:07 AM
Monday, Jan 611:07 AM| Comment!
- Telefonica (TEF +0.2%) denies an Italian media report stating the carrier and Brazilian subsidiary Vivo (VIV -0.7%) are working with rivals America Movil (AMX +0.4%) and Oi (OIBR -1.7%) to acquire and break up Telecom Italia's (TI +0.1%) Brazilian unit, TIM Participacoes (TSU -1%). TIM and Oi are trading moderately lower today after flying higher on Friday in response to the report.
- Telefonica adds it hasn't talked with Brazil's antitrust regulator Cade about a deal. Reuters recently reported Cade has given Telefonica, which owns a large indirect stake in Telecom Italia, 18 months to lower its Brazilian market presence, either by cutting ties with TIM or finding a partner for Vivo.
- However, Cade reportedly prefers TIM to be sold in whole to a new market participant, rather than piecemeal to rivals. Telefonica, America Movil, and Oi would likely prefer that didn't happen, since it could spell competition from a major foreign carrier such as AT&T or Vodafone.
- Telefonica and others have been pressuring Telecom Italia to explore a sale of TIM, but the debt-laden Italian telco has been reluctant to cut its ties with a major growth market.
Friday, Jan 33:37 AM
Friday, Jan 33:37 AM| 1 Comment
- Telefonica (TEF) is reportedly working on a joint offer with its two main rivals in Brazil to acquire TIM Brasil and then break up the Telecom Italia (TI) unit.
- The Spanish giant's prospective partners are Carlos Slim's America Movil (AMX, AMOV), the owner of mobile operator Claro, and Brazil's Oi.
- Telefonica already has an interest in TIM Brasil via its 15% stake in Telecom Italia, although regulators last month told the Spanish operator to divest that interest or find a new partner for its Vivo mobile unit.
Tuesday, Dec 242013, 11:51 AM
Tuesday, Dec 242013, 11:51 AM| Comment!
- Credit Suisse reinstates coverage of Telecom Italia (TI -0.5%) shares at Neutral, citing improvements in mobile pricing in Italy since the "very low levels of summer," which have raised expectations "of an inflection point in the performance of the domestic operations after several years of deteriorating trends."
- The caveat? "Pressure on the wirelines business is still growing ... with cord cutting slowly increasing as consumers gradually react to the mobile price cuts of the last 18 months." Analyst Justin Funnell notes that mobile plans with 200-550 voice minutes, SMS, and 1-2GB of data are priced at €10-€15/month, around half the estimated ARPU of TI's 6.5M voice-only lines.
- The firm believes TI recognizes the challenge, demonstrated by cuts to 2play prices for new customers.
- As for Brazil, although the "logic for mobile consolidation ... is strong ... the complexity of a potential deal suggests a lengthy timetable and uncertain outcome."
Friday, Dec 202013, 4:18 PM
Friday, Dec 202013, 4:18 PM| Comment!
- Telecom Italia's (TI +0.7%) directors will keep their positions after shareholders rejected a proposal by dissident shareholder Marco Fossati to dismiss the company's board. 50.3% of present shareholders voted against the proposal and 42.3% for it, with 7.4% of the vote abstaining.
- The decision represents a victory for Telefonica (TEF -0.1%), who owns a 22.4% stake in TI through Telco. Bloomberg observes, "Telefonica ... has sought closer ties with Telecom Italia to take advantage of its holdings in Brazil [TIM Participacoes (TSU +1.3%)], a growing market where both carriers operate." Fossati had voiced concerns that Telefonica's interest in the Brazilian assets is incongruent with the interests of TI's other shareholders.
- Shareholders, meanwhile, also rejected the appointment of Telco-nominated directors Stefania Bariatti and Angelo Tantazzi.
Wednesday, Dec 182013, 1:15 PM
Wednesday, Dec 182013, 1:15 PM| Comment!
- Reuters reports Brazilian antitrust regulator Cade has given Telefonica (TEF +0.6%) 18 months to lower its presence in the country, either by selling its indirect stake in TIM Participacoes (TSU -0.5%) or by finding a partner for local subsidiary/#1 Brazilian mobile carrier Vivo (VIV -2.5%).
- Telefonica has been pushing Telecom Italia (TI -0.3%) to sell TIM, and so has another minority investor, BlackRock. However, the Italian telco has been loathe to pull the trigger. Sources tell Reuters Telefonica wants to split up TIM's assets between Vivo and fellow Brazilian rivals America Movil (AMX -0.1%) and Oi (OIBR -1.9%).
- A banker talking with the news service thinks Cade's lengthy timetable will result in Telefonica taking its time to unload TIM. "If I had to bet on something, I would expect them to wait until the first half of 2015." Brazil's presidential election takes place in Oct. '14, and that could bring a change in the regulatory climate.
Tuesday, Dec 172013, 12:03 PM
Tuesday, Dec 172013, 12:03 PM| Comment!
- Shareholders with a combined 53.8% stake in Telecom Italia (TI -0.9%) have registered to vote at the telco's Dec. 20 shareholder meeting, which will see a vote on whether to oust the board. The resolution needs 1 vote more than 50% of shareholders at the meeting to pass.
- Telco, which holds a 22.4% stake, will therefore need the backing of other investors to fend off Marco Fossati's proposal to scrap current directors.
- The fate of TI's prized TIM Participacoes (TSU +0.2%) unit may hang in the balance, with Fossati having vocalized the belief that Telco will attempt to divest the ops, leaving TI will limited growth opportunities.
- BlackRock, which has aggressively expanded its stake ahead of the shareholder meeting, has registered to vote, while proxy advisor ISS has taken Fossati's side and is estimated to represent ~9% of the vote.
Monday, Dec 162013, 2:51 AM
Monday, Dec 162013, 2:51 AM| Comment!
- BlackRock (BLK) holds 7.783% of Telecom Italia's (TI) voting stock, news agency ANSA reports, having almost doubled its total stake last month to 10.1% from 5.1%. The private-equity firm also holds 0.006% in TI ADRs, as well as convertible bonds.
- BlackRock's disclosure comes ahead of a special shareholder vote on Friday over the composition of TI's board amid accusations of conflicts of interest involving Telefonica (TEF), a major TI stockholder. Of particularly concern is that TI's TIM Participacoes Brazilian unit competes with Telefonica, causing regulators to demand that TI sell the subsidiary.
- Update: BlackRock says its voting stake in TI was 7.789% as of yesterday. The P-E firms also owns €183M ($252M) in TI convertible debt, equivalent to a holding of 1.639%.
Sunday, Dec 152013, 2:41 AM
Sunday, Dec 152013, 2:41 AM| Comment!
- BlackRock (BLK) has almost doubled its stake in Telecom Italia (TI) to 10.1% from 5.1% in a move that could give the U.S. private-equity firm a crucial say in a vote on Friday over whether to oust the carrier's board.
- However, BlackRock's holdings are split over several funds, so it's unclear how many shares it will be able to use in the ballot.
- Businessman Marco Fossati, who holds 5% in Telecom Italia, has helped force the vote because of what he says are conflicts of interest on TI's board and the possible sale of its Brazilian mobile unit, TIM Participacoes. Fossati is opposed to the divestment, although BlackRock is in favor.
- TIM competes with Telefonica (TEF), which is the majority owner of Telco, an investment group that controls TI's board with a 22.4% stake in the carrier. Hence the accusation of conflict of interests.
- To reduce those perceived conflicts, Telefonica's two representatives on TI's board, including CEO Cesar Alierta, have resigned as TI directors. Telefonica will not take up its right to propose replacements.
Wednesday, Dec 42013, 1:51 PM
Wednesday, Dec 42013, 1:51 PM| Comment!
- Activist Telecom Italia (TI +0.4%) 5% shareholder Marco Fossati, who has voiced concerns that Telefonica's aims do not align with those of shareholders, has won a helping hand from proxy advisor ISS. It has recommended institutional investors back a proposal to remove the company board at a Dec. 20 shareholder meeting.
- Proxy votes are estimated to exceed 9%, while institutional investors hold nearly 50% of the capital base.
- If the coup is successful, shareholders would have to elect a new slate of directors. Fossati's holding company, Findim, has backed a list of 7 new directors presented by Italian asset managers' association Assogestioni.
- Given Telefonica's opposition to the proposal, the board's fate is uncertain. Fossati vowed "We might not have the number of votes ... but we are committed ... This will not finish in December."
Monday, Dec 22013, 9:21 AM
Monday, Dec 22013, 9:21 AM| Comment!
- Telecom Italia (TI) denies media reports that there are ongoing contacts with potential buyers for the sale of its TIM Brazil (TSU) unit: "Telecom Italia wishes to make clear that the rumors of presumed plans for the deconsolidation and/or total or partial valuation of the Brazilian asset, described and repeated by journalists, pundits and analysts are inferences wholly without foundation."
- The company once again stressed the "strategic importance" of the Brazilian ops. Speculation has swirled for some time that TI may sell the entire Brazilian unit, with some analysts seeing the Italian parent's constant rejection of the rumors as a bargaining ploy.
- A Bloomberg report last week added a new possibility to the M&A speculation, claiming that TSU has retained Morgan Stanley to divest 7K mobile towers.
- TI shares are 1.7% lighter in Milan trading.
Friday, Nov 292013, 9:52 AM
Wednesday, Nov 272013, 1:27 PM
Wednesday, Nov 272013, 1:27 PM| 1 Comment
- Bloomberg reports Telecom Italia's (TI +0.2%) Brazilian unit (TSU -0.5%) is partnering with Morgan Stanley to find potential buyers for its 7K mobile towers, and that TI proper is "analyzing internally" how to unload its 12K Italian towers.
- American Tower (AMT -0.2%) is named as a potential bidder for the Brazilian assets, which one source thinks could fetch €700M ($951M).
- The report comes as expectations grow TI will eventually sell TSU, in which it owns a 67% stake, altogether. Major TI shareholder Telefonica wants to see a Brazilian sale, but TI has said there's currently no sales process underway.
- AMT is only two months removed from announcing a $4.8B deal to acquire major U.S. tower owner Global Tower Partners. Before that, the company struck an $811M tower purchase/lease-back agreement with NII Holdings for over 4,400 Brazilian and Mexican towers.
- Muddy Waters has been quite critical of an older Brazilian tower purchase deal carried out by AMT.
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