Following Italy’s inconclusive general election, Telecom Italia has postponed its planned hybrid bond issue of up to €3bn (US$4bn).
Speaking at the Mobile World Congress in Barcelona, CEO Franco Bernabe said the company is “awaiting more stable and…
Following Italy’s inconclusive general election, Telecom Italia has postponed its planned hybrid bond issue of up to €3bn (US$4bn).
Speaking at the Mobile World Congress in Barcelona, CEO Franco Bernabe said the company is “awaiting more stable and favourable market conditions”.
COO Marco Patuano also spread the word at the congress, telling reporters that the issue is not urgent and that the company can afford to wait for conditions improve.
The Italian incumbent announced early this month that it would launch a hybrid subordinated debt securities programme of up to €3bn over an 18-24 month period and subsequently held an investor roadshow.
The telco was widely expected to launch the first of several hybrid issues this month, however reports last week said the company had decided to delay the first placement, suggesting the controversial Italian elections and the sale of TV channel La7 to Cairo Communications, with whom it is in exclusive negotiations, were factors.
Italian stocks, including Telecom Italia’s, dropped dramatically following the parliamentary elections over the weekend that had failed to produce a clear winner.
Telecom Italia reported revenues of €29.5bn in its preliminary FY 2012 results, down 0.5% in organic terms year-on-year. EBITDA was down 2% in organic terms to €11.67bn. Adjusted net financial debt totalled €28.27bn – €2.14bn less than at the end of 2011.
Commenting on the results, Bernabe said operating results were in line with targets and “even more significant” given Italy’s still “extremely tough” economic climate with its persistent recession 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”.
