Telecom Italia SpA

TIT: XMIL (ITA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€1.69	Hdr	Xmss

Telecom Italia Earnings: Italian Market Has Not Changed Despite First Positive Growth in 5 Years

Javier Correonero

Aug 3, 2023

No-moat Telecom Italia grew revenue by 2.8% and EBITDA after leases by 5.5% in the second quarter, mainly aided by its Brazilian business, which grew sales by 9.5% and EBITDAaL by 21%. In Italy Telecom Italia reported its first quarter of domestic revenue growth in 5 years, with revenue up 0.9%. However, this was explained by the strong growth in handset sales. Italian service revenue declined by 0.9%, with the mobile market still under pressure and down 4.2% year over year. We maintain our EUR 0.25 fair value estimate and Very High Morningstar Uncertainty Rating for Telecom Italia.

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