Telecom Italia is planning to spend capital expenditure (Capex) of around €16 billion over three years (2013-2015).
Telecom Italia’s board chaired by Franco Bernabè approved the Capex plan.
This is not a huge Capex plan comparing with AT&T investment in telecom networks. American telecom giant AT&T will spend $22 billion per year as Capex (capital expenditure) in the next three years to expand networks.
Telecom Italia will focus on technology development plans in fixed / mobile telephony in Italy and mobile telephony in Brazil.
The mobile major will also start an issuance program of hybrid subordinated debt securities for an amount up to €3 billion over a period of 18-24 months.
Meanwhile, Telecom Italia Group’s revenues decreased 1.5 percent to €29.503 billion in FY 2012 from €29.957 billion in 2011.
Its performance in domestic business unit affected the revenue.
Argentina revenue increased €564 million, while revenue in Brazil increased €134 million.
The Italian company said its Earnings before interest, tax, depreciation and amortization or Ebitda stood at 11.66 billion euros ($15.62 billion)
Italy’s largest telecoms company said its Capex in 2012 was €5.196 billion. Telecom Italia said €3.072 billion was spent for the domestic business unit, a decrease of €899 million compared with 2011. The domestic business unit reported a fall of €1.113 billion in Capex. Brazil reported an increase of €210 million in Capex. Argentina reported Capex in line with the previous year.
“The steady pursuit of efficiencies has enabled the group to close FY 2012 with operating results in line with its targets. Such results are even more significant, achieved as they were in an extremely tough economic climate with persisting recession and market difficulties in Italy, and a slowdown in growth in Brazil and Argentina. The group continues to pursue debt reduction through robust cash generation, which will help to fund the development of network infrastructure in Italy and abroad, which we believe is crucial,” said Bernabe.