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TI $5.63

TI target price
5.63
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Telecom Italia SpA
Type
Società per Azioni
Traded as BIT: TIT
Industry Telecommunications
Founded 1925 as Stipel
1964 as SIP
1994 as Telecom Italia
2015 as TIM (Commercial rebrand only)
Headquarters Rome, Italy
Key people
Amos Genish (CEO)
Products Fixed Telephony
Mobile Telephony
Broadband Internet
IT Services
Networking Solutions
Digital television
Revenue Decrease €21.57 billion (2014)
Operating income
Increase €4.53 billion (2014)
Net income
Increase €2.35 billion (2014)
Total assets Increase €71.55 billion (2014)
Total equity Increase €21.67 billion (2014)
Number of employees
66,025
Website www.telecomitalia.com

Telecom Italia is an Italian telecommunications company headquartered in Rome, which provides telephony services, mobile services, and DSL data services. It was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was Società Italiana per l'Esercizio Telefonico p.A., (known as SIP, from the earlier Società Idroelettrica Piemontese), the former state monopoly telephone operator in Italy.

The company's stock is traded in the Borsa Italiana.

In 1925, the phone network was reorganised by Benito Mussolini cabinet and Stipel company was established in the same year. The original core of Telecom Italia includes also 4 more different companies: TIMO, Teti, TELVE and SET. Each of them worked in a specific geographical area. It was in 1964 that these companies merged in one single group, under the name of SIP.

In 1964, Società Idroelettrica Piemontese (SIP), a former energy company founded in 1918, ceased producing energy and acquired all of the Italian telephone companies, becoming SIP - Società Italiana per l'Esercizio Telefonico. It was run by the Italian Ministry of Finance.

SIP was a state monopoly from 1964 to 1996 and Italian people had to pay the "Canone Telecom" (Mandatory Telecom Tax of about €120 per year plus hardware and bills) in order to have a phone at home.

Telecom Italia was officially created on 27 July 1994 by the merger of several telecommunication companies among which SIP, Iritel, Italcable, Telespazio and Sirm. This was due to a plan of reorganization of the telecommunication sector presented by IRI to the Minister of Finance.

In 1995, the mobile telephony division was spun off as TIM (Telecom Italia Mobile). Interbusiness, Italy’s largest Internet network, was created and in the same period with TIN (Telecom Italia Net) and the first ISPs, Internet became a reality in Italy too. In 1996, TIM introduced a new prepaid rechargeable phone card (GSM) and one year later launched the short messaging service (SMS) capability.In 1997, under the chairmanship of Guido Rossi, Telecom Italia was privatised and was transformed into a large multimedia group.

By 2001, the company was in debt and was bought by Marco Tronchetti Provera. The following year, the Group released its DSL Flat service in Italy, Alice ADSL, with a download speed of 32 kbit/s and an upload speed of 8 kbit/s for €40/month plus a monthly based tax of €14.57, the "Canone Telecom", besides the mandatory monthly bills for the home telephone numbers (without a home telephone number you couldn't get the ADSL service). Telecom Italia Media, the Group's multimedia company was formed in 2003 from Seat Pagine Gialle, focussing its business on the television sector with La7 and MTV channels.

After the reorganization of editorial activities, in 2005 Telecom Italia acquired Tin.it and Virgilio from Telecom Italia Media. The Telecom Italia Group also operates in South America: in Brazil as TIM Brasil, and in Argentina and Paraguay with Telecom Argentina Group. TIM Brasil has its local headquarters in Rio de Janeiro.

Telecom Italia had bigger debts in 2005, and, one year later, CEO Marco Tronchetti Provera resigned.

In 2007 the company was bought by "Telco" (composed by Telefónica and several Italian banks). Telefónica currently owns 46% of Telco, the holding company that controls 22% of Telecom Italia.

In late 2013, Telefónica announced its intention to acquire the entirety of Telco by January 2014, potentially becoming Telecom Italia's largest shareholder. The plan, however, is being challenged by the Brazilian competition authority since Telefónica and Telecom Italia, with Vivo and TIM respectively, are the two largest telephone companies competing in Brazil.

In 2015, Telecom Italia Group started a rebranding process of the telephony and mobile businesses under the single TIM brand.

In the same year, the Board of Directors approved the new company's division, the Infrastrutture Wireless Italiane, or INWIT, which operates 11,500 wireless towers.

It was revealed in October 2015 that shareholders Vivendi would raise their stakes further in the company from its current level of 15.49%. As of May 2017, Vivendi owns 24.6% of the company with it CEO becoming Executive Chairman

Telecom Italia Mobile illegally charged money for Internet providing renew subscriptions for 5 years to its customers during the "free" subscription renewals.

On 8 August 2012, TIM Brasil became involved in a massive scandal in Brazilian news after the release of report by the Brazilian National Telecommunications Agency Anatel.

The report points that on TIM's prepaid voice plan (24.7% market share), called "Infinity" (in which the user pays roughly US$0.12 for each unlimited time call), the calls were intentionally dropped by the company, forcing the customers to make (and pay for) new calls to keep talking. In just one day, 8.1 million calls were dropped and the total profit was approximately $2 million. Upon release of the report, the Public Ministry of the Paraná State filed a lawsuit against TIM asking that it stop selling new mobile lines in Brasil and pay a multimillion-dollar fine for the damages against consumers.

The Telecom Italia Group provides phone landline services and mobile services in Italy, GSM mobile phone services in Italy and Brazil through its TIM subsidiary, (TIM Brasil), and DSL internet and telephony services in Italy and San Marino. It also operates in international telecommunication services, for other operators and corporations, through its subsidiary Telecom Italia Sparkle. In 2013, the total amount of the company's debt is about 26 billions €.

Telecom Italia controls also Olivetti, a manufacturer of computer peripherals and mobile phones. On March 31, 2014, Telecom Italia leads both the direct fixed access lines market with 62,0% and the mobile “postpaid” segment with 45% of market share. In the mobile “prepaid” segment Telecom Italia owns 31,5% of market share together with Vodafone.

After the merger of Wind and 3 Italia, approved on August 6, 2015, Telecom Italia is now the second country’s largest carrier with 30 million customers, followed by Vodafone (25 millions), but it preserves its leadership on the direct fixed access lines market and the mobile “postpaid” segment. Telecom Italia has 66,025 employees.

In 2002, Telecom Italia subscribed to the United Nations corporate responsibility initiative Global Compact. It is also member of a number of stock market indexes which include companies focused on corporate social responsibility, including the Dow Jones Sustainability Indexes and those administered by FTSE Group's FTSE4Good. Its part-owned Brazilian subsidiary, TIM Participações, is listed in the Bovespa's ISE (Índice de Sustentabilidade Empresarial) index.

Telecom Italia promotes a sustainability strategy including both environmental and social issues: on June 2014 it signed an agreement with A2A to buy energy only from renewable sources.

Media related to Telecom Italia at Wikimedia Commons

Q reports

Period Date Adjusted Actuals EPS GAAP EPS
Q4 2018 2019-02-21 0.00 -0.31
Q3 2018 2018-11-08 0.00 -0.79

Ratings

2016-07-06 Downgrade JPMorgan Chase & Co. Overweight to Neutral
2016-05-16 Reiterated Rating Raymond James Buy
2016-05-16 Reiterated Rating Raymond James Financial Inc. Buy
2016-03-28 Reiterated Rating Barclays Equal Weight
2016-03-28 Reiterated Rating Barclays PLC Equal Weight
2016-03-08 Upgrade Credit Suisse Underperform to Neutral
2016-03-08 Upgrade Credit Suisse Group AG Underperform to Neutral
2016-02-18 Upgrade Bank of America Neutral to Buy
2016-02-18 Upgrade Bank of America Corp. Neutral to Buy
2015-11-16 Downgrade BNP Paribas Outperform to Neutral
2015-10-12 Downgrade Barclays Underweight
2015-10-06 Downgrade Barclays Equal Weight to Underweight
2015-09-14 Downgrade Nomura Neutral to Reduce
2015-09-14 Downgrade Nomura Holdings Inc. Neutral to Reduce
2015-09-01 Upgrade RBC Capital Sector Perform to Outperform
2015-09-01 Upgrade Royal Bank Of Canada Sector Perform to Outperform
2015-08-24 Downgrade Macquarie Neutral to Underperform
2015-07-30 Downgrade Berenberg Bank Buy to Hold
2015-07-15 Downgrade Goldman Sachs Conviction-Buy to Buy
2015-07-15 Downgrade Goldman Sachs Group Inc. Conviction-Buy to Buy
2015-06-25 Reiterated Rating Nomura Neutral
2015-06-25 Reiterated Rating Jefferies Group Hold
2015-06-18 Initiated Coverage Raymond James Buy to Outperform
2015-06-01 Upgrade Jefferies Group Hold to Buy
2015-05-29 Downgrade Macquarie Outperform to Neutral
2015-05-20 Upgrade Oddo & Cie Buy
2015-05-20 Upgrade Oddo Securities Buy
2015-04-27 Downgrade Bank of America Buy to Neutral
2015-04-20 Downgrade RBC Capital Sector Perform
2014-11-05 Initiated Coverage Bank of America Buy
2014-07-11 Upgrade Espirito Santo Investment Bank Research Neutral to Buy
2014-07-10 Upgrade JPMorgan Chase & Co. Neutral to Overweight
2014-04-14 Upgrade Banca Akros Hold to Accumulate
2014-03-28 Upgrade Berenberg Bank Hold to Buy
2014-01-23 Reiterated Rating Barclays Equal Weight
2014-01-22 Downgrade Espirito Santo Investment Bank Research Buy to Hold
2014-01-16 Upgrade Nomura Reduce to Neutral
2014-01-16 Initiated Coverage Jefferies Group Hold
2013-12-24 Initiated Coverage Credit Suisse Neutral
2013-11-29 Upgrade HSBC Neutral to Overweight
2013-11-13 Reiterated Rating Goldman Sachs Buy
2013-11-08 Downgrade Natixis Buy to Neutral
2013-10-10 Upgrade RBC Capital Underperform to Sector Perform
2013-10-01 Initiated Coverage Goldman Sachs Underperform to Buy
2013-09-30 Upgrade JPMorgan Chase & Co. Underweight to Neutral
2013-09-27 Boost Price Target HSBC Neutral $0.50 to $0.60
2013-09-27 Downgrade Banca Akros Accumulate to Hold
2013-09-16 Downgrade Citigroup Inc. Neutral to Sell
2012-11-23 Upgrade HSBC Securities Underweight to Neutral
2010-02-18 Upgrade Bernstein Mkt Perform to Outperform
2010-01-22 Downgrade Citigroup Buy to Hold
2016-07-06 Downgrade JPMorgan Chase & Co. Overweight to Neutral
2016-05-16 Reiterated Rating Raymond James Buy
2016-05-16 Reiterated Rating Raymond James Financial Inc. Buy
2016-03-28 Reiterated Rating Barclays Equal Weight
2016-03-28 Reiterated Rating Barclays PLC Equal Weight

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Major Shareholders

Name Relationship Total Shares Holding stocks