Telecom Italia CEO Marco Patuano has reportedly dismissed recent media rumours about the incumbent’s potential interest in merging with Berlusconi-owned broadcaster Mediaset Group to expand into the pay-TV segment.
In an interview with Italian daily…
Telecom Italia CEO Marco Patuano has reportedly dismissed recent media rumours about the incumbent’s potential interest in merging with Berlusconi-owned broadcaster Mediaset Group to expand into the pay-TV segment.
In an interview with Italian daily Repubblica, Patuano said Telecom Italia is interested in the pay-TV market, but will pursue this through partnerships rather than M&A.
Furthermore, there is no pressure to buy media companies, as Telecom Italia would like to be a content distributor, not a content producer.
The CEO confirmed that the Rome-based operator will offer TV packages in partnership with Sky from next month, and is looking to ink similar deals with other content providers such as Mediaset Premium and Netflix, which is not currently available in Italy.
Telecom Italia could also receive valuable pay-TV advice from Vivendi chairman Vincent Bollore, who sits on the board of TI shareholder Mediobanca and will soon hold 8.3% of the company’s voting rights, noted a banker.
European telcos are increasingly interested in quadruple play, pursuing a TV presence through both partnerships and acquisitions. BT, for its part, bought big-ticket football and rugby broadcast rights as part of its BT Sport offering, while Telefonica is trying to buy Distribuidora de Television (DTS), also known as Canal+, from Spanish media conglomerate Prisa.
Highly-leveraged Telecom Italia is in need of cash to upgrade its outdated copper network. The company, which is striving to reduce its €26.65bn debt burden, has recently announced a two-year strategic plan, which will see it invest €14bn in network upgrades in Italy and Brazil, where it controls the second-largest mobile carrier TIM Brasil.
In recent months, the operator has drawn interest from a number of potential bidders, including Orange and a consortium of private equity funds led by former Telstra CEO Sol Trujillo.
The telco reported consolidated revenues for 2014 of €21.57bn, down 5.4% year-on-year. EBITDA totalled €8.7bn, down 6.8% on the 2013 result.
