TIM has achieved its goal of reduction of debt: i financial results presented tonight reward the company's new strategy, three months ahead of schedule. Against, the operator shows declining revenues, despite the increase in ARPU in the mobile segment.
The operating cash flow reached 2.2 billion euros, with an improvement of almost 800 million compared to last year, while net financial debt decreased by 958 million euros and now stands at 24.3 billion euros.
In terms of revenues, the company shows results down 4.3% year on year, stopping at an altitude 13.4 billion euros. The EBITDA is instead equal to 6 billion euros, up 4%, thanks to one-off events that benefited the balance of non-recurring items.
Services revenues, which fell by 4% year-on-year, to a 3,992 million euro fall, particularly in the segment mobile is continuing the trend of ARPU increase: today, the average monthly revenue per single TIM mobile line went from 12.5 euros to 12.9 euros.
To this is added one constant decline in the overall number of portability, despite "Persistent high competition in the most price-sensitive market segment".
In the mobile segment, TIM has in September 2019 of 31.3 million lines, slightly down compared to the previous quarter, with revenues down 9.4%
Different speech for the fixed segment, in which TIM's recent commercial initiatives have reduced the rate of disconnection (the so-called churn rate), which rose from 6.1% to 4.4%. Broadband customers are growing steadily (117,000 against 60,000 in the previous quarter) and overall fiber lines are 6.6 million, with an increase of 34% year on year.
Despite this, revenues from fixed-rate services show a slight reduction of 0.4%, especially with reference to voice services.
As regards instead device sales, TIM has decided to reposition its offer on products with higher margins, after a loss of 127 million euros compared to last year.
Turning now to investments at Group level, these suffered a drop of 8.7%, partly justified by the achievement of hedging targets in the Italian market. In the third quarter, TIM has invested 795 million euros and is preparing to launch its Digital Operation Risorgimento project, aimed at involving 107 municipalities to disseminate the knowledge and skills necessary for the use of digital tools and the demolition of the digital divide.
Distinguishing between the Domestic Business Unit (Italian market) and the Brazil Business Unit (TIM Brasil), we note that investments in Italy amounted to 1,699 million euros, compared to 577 million euros in Brazil, up to stimulate the growth of the mobile and fixed network infrastructure with TIM Live.
For the rest of the year, TIM deems confirmed the guidance of the Interim Financial Report at June 30, 2019.
Leaving aside now the accounting aspects, TIM has announced that the processing of its main ones strategic initiatives is continuing at full speed. As regards the network agreement with Vodafone for the creation of the new Inwit, the company recalls that the contract was finalized in July 2019 and that they are currently evaluations by the Antitrust Authorities are underway.
Also discussions and comparisons onintegration of the fiber network with Open Fiber proceed as planned, although the documents presented this evening do not show any further details.
A Announcements announced today is the consumer credit partnership with Santander Consumer Bank, which will create a Joint Venture to finance the purchase of terminals through installment loans and subsequently for other consumer credit and insurance products. With this transaction, TIM aims to further reduce its debt, while increasing revenues.
Finally, TIM announces that it has signed an agreement with Netflix which aims to enrich TIMVISION's offer with films, series, documentaries and original contents of the well-known streaming service. Although no further information has been provided, TIM customers will be able to activate the offers on the bill and follow Netflix directly from their TIM Box.
With the agreement signed with Netflix, TIM reaffirms the new direction taken by its multimedia platform, which now follows the path of aggregation of third-party digital content.
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