The achievement of the debt reduction target is anticipated "of about three months". Strategic agreements signed with the Silicon Valley giant on the offer of cloud services and edge computing and with Santander on consumer credit
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Tim closes the 9 months with revenues down 4.6% to 13.423 billion, a comparable ebitda of around 6 billion (+ 4%) and a reported net profit of 852 million (negative for 868 million in the same period 2018). The results of the first nine months "have enabled us to anticipate the achievement of the debt reduction target by about three months and confirm the acceleration imposed by management on the construction capacity in a complex competitive environment".
Operating free cash flow reached € 2.2 billion, recording an improvement of € 791 million "thanks to continuous cost reduction and optimization of working capital management". The equity free cash flow amounted to 1.2 billion, with an increase of over 1 billion euro and consequently to 30 September it decreased by 958 million euro from the end of 2018 and by 419 million euro compared to 30 June 2019, reaching 24.3 billion euros.
MoU with Google, partnerships and 800 recruitments
Telecom Italia has signed a memorandum of understanding with Google Cloud to define a strategic partnership that will allow it to become the leading Italian player in the offer of cloud services and edge computing, expanding its technological offer with innovative public, private and hybrid cloud services and giving an acceleration in the growth of its revenues from technological services. Within the partnership, companies are expected to collaborate on initiatives go-to-market to accelerate the digitalization of Italian companies, from SMEs to large industry.
Tim will invest significantly in innovation and professional growth. Investments will include the construction of new state-of-the-art proprietary data centers (up to Tier IV level), as well as the hiring and training of over 800 cloud-based engineers over the next few years.
With Santander, a consumer credit jv
Santander Consumer Finance, through its Italian subsidiary Santander Consumer Bank SpA, and Tim have signed an agreement, as anticipated by Radiocor, to set up a joint venture that will offer consumer credit services to Tim's customers in Italy. The initial objective is to offer financing for the purchase of terminals via installment plans and, at a later stage, other consumer credit and insurance products. The agreement provides for the creation of a joint venture in which Santander Consumer Bank controls 51% and Tim 49% and which will be operational from next year.