Telecom Italia posts 1.6 bn loss
Telecom Italia SpA (TIT), Italy’s biggest phone company, reported a 2012 loss after taking a bigger-than- expected goodwill writedown of more than 4 billion euros ($5.2 billion). The net loss was 1.6 billion euros, compared with a loss of 4.8 billion euros in 2011, the Milan-based company said yesterday. The writedown was related to the purchase of Olivetti in 1999 and the acquisition of Telecom Italia Mobile minorities in 2005, Telecom Italia said. As competition and contracting economies in Europe hurt sales and profitability at the region’s former phone monopolies, Telecom Italia has announced dividend cuts and is working on asset sales. Its Telecom Italia Media SpA (TME) unit this week agreed to sell the La7 television channel to Cairo Communication.