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Telecom Italia was recently saw control of its boardroom wrested away from its former biggest shareholder Vivendi, in favour of a new group headed up by activist investor Elliott Management
Telecom Italia is to continue selling off its non-core assets as it looks to raise funds to be reinvested at Italy’s forthcoming 5G auction.
In a statement accompanying is quarterly financial report, Telecom Italia said that it would press ahead with the sale of its broadcast subsidiary, Persidera.
"The Board of Directors has examined the financial implications that could derive from the Company’s participation to the 5G auction and has started an evaluation process of the strategic option related to its subsidiaries, confirming that the Persidera sale should continue," the company said.
Telecom Italia’s revenues fell by 2.7 percent on a year on year basis, to €9.54 billion, which the company blamed on access dynamics in Europe and currency fluctuations which blighted its Brazilian business unit. However, the fall was offset slightly by an increase in the company’s average return per user (ARPU).
With bidding at Italy’s 5G auction expected to raise close to €500 million, the Italian telco will look at divesting other non-core assets as a way of raising additional funding.
