Telecom Italia SpA ADR

TIIAY: PINX (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$1.10	Glbz	Brkts

Telecom Italia Earnings: Holding Up; Net Debt Rises to EUR 26.6 Billion

Javier Correonero

May 30, 2024

No-moat Telecom Italia saw shares drop by 7% during the May 30 trading session after reporting first-quarter results. Although revenue and EBITDA after leases were in line with consensus estimates, investors remain worried about Telecom Italia's debt in a hypercompetitive Italian market. Net debt during the quarter rose to EUR 26.6 billion from EUR 25.7 billion at year-end, in large part due to a EUR 250 million provision over alleged fraud. We are maintaining our EUR 0.25 fair value estimate and Very High Morningstar Uncertainty rating.

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