The test of accounts for Telecom Italia is approaching and will report the results of the 3rd quarter on October 27th. Equita SIM analysts foresee improving dynamics in terms of fixed and mobile domestic customers thanks to a reduction in the abandonment rate. Mobile customers are seen down by 150 thousand units (-248 thousand in 2Q) and stable fixed customers (-9 thousand in 2Q). “We do not yet expect strong signals on BB customers in 3Q from the launch of football (+ 45 thousand, similar to 2Q), probably more visible in 4Q”, adds the Milanese sim.
Domestic AL Ebitda is still expected to drop significantly to -9.2% yoy due to football start-up costs, the drop in revenues and the recovery of operating costs with the positive trend from Brazil no longer penalized by exchange rates (EUR-BRL + 2% y / y).
Group results should show -1.3% of revenues to 3.849 billion and -6.2% of AL ebitda at 1.477 billion. By virtue of this, Equita reduces its estimates for the whole of 2021 by 1% as revenues to 15.677 billion (reduction of -1% domestic to 12.844) and by -1.4% as EBITDA AL to 5.844 billion (reduction of 1 , 5% domestic at 4,758 ld, seen down by -6% y / y), with an impact of 8% on adjusted net profit.
Equita cuts the valuation to 0.35 euros (from 0.37 euros) on ordinary shares and 0.38 euros (from 0.40) on savings shares.
In Piazza Affari, the TIM stock drops 1.3% to € 0.3328.