Connect with us

Business

Telecom Italia slides to one-year low after cutting guidance

Published

on

October 28, 2021

MILAN (Reuters) – Shares in Telecom Italia (TIM) fell as much as 7.9% on Thursday to an almost one-year low after Italy’s biggest telecoms group further cut its 2021 core profit guidance to reflect worsening market conditions.

The cut puts pressure on Chief Executive Luigi Gubitosi, who won a second term in February, backed by TIM’s main investors, French media group Vivendi and state lender CDP. A source close to Vivendi said late on Wednesday the company remained committed to TIM despite the disappointing results.

TIM said it expected its earnings before interest, tax, depreciation and amortisation after leases (EBITDA-AL) to post a mid-single digit drop this year, versus a previous forecast for a low-to-mid single digit decline.

Advertisement

This comes after the group said in July it would fail to stabilise core profit this year.

TIM also pushed back a goal to stabilise domestic service revenues in 2021, forecasting a low single digit decrease.

Banca Akros analysts said in a note the guidance cut, while not completely unexpected, “signals a difficult scenario and will trigger further estimates downgrades”.

Like other European peers, TIM is grappling with aggressive price competition on its crowded home market, which accounts for nearly 80% of sales.

TIM hopes to tackle some of the domestic challenges by developing so-called adjacent business units, such as cloud, cybersecurity and Internet of Things ventures and is considering options for its portfolio of services and network assets, including potential alliances and new investors.

Advertisement

In the third quarter, EBITDA-AL fell 7.6% year-on-year to 1.46 billion euros, just below an analyst consensus provided by the company of 1.47 billion euros. Domestic revenues fell 3.2% year-on-year, in line with expectations.

By 0710 GMT, the stock was down 5.6% to 0.32 euros after earlier hitting a low of 0.31 euros, a level last seen in early November 2020.

($1 = 0.8624 euros)

(Reporting by Agnieszka Flak and Elvira Pollina; Editing by Keith Weir)

Advertisement
Continue Reading
Advertisement

Business

Canada’s Shopify records Black Friday sales up 21%

Published

on

November 27, 2021

(Reuters) – Canadian e-commerce company Shopify Inc recorded worldwide sales of nearly $2.9 billion on Black Friday, an increase of about 21% in comparison to last year, the company said Saturday.

New York, London and Los Angeles were among the top-selling cities, the company said, while apparel and accessories was the top-selling product category.

Shopify also said it funded 23,000+ tonnes of carbon removal to counteract emissions from the delivery of every order placed on its platform on Black Friday.

Advertisement

(Reporting by Aakriti Bhalla in Bengaluru; Editing by Nick Zieminski)

Continue Reading

Business

Xiaomi to open car plant in Beijing with annual output of 300,000 vehicles – Beijing govt

Published

on

November 27, 2021

SHANGHAI (Reuters) – Chinese smartphone giant Xiaomi Corp will build a plant that can produce 300,000 vehicles annually in Beijing for its electric vehicle unit, authorities in the capital said on Saturday.

The plant will be constructed in two phases and Xiaomi will also built its auto unit’s headquarters, sales and research offices in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi’s Chief Executive Lei Jun in October.

Advertisement

In March, Xiaomi said it would commit to investing $10 billion in a new electric car division over 10 years. The company completed the business registration of its EV unit in late August.

The company has been opening thousands of stores to spur domestic sales growth for its smartphone business but eventually intends to use these shops as a channel for its plans to sell electric vehicles.

(Reporting by Brenda Goh; Editing by William Mallard)

Advertisement
Continue Reading

Business

Eni sells Snam 49.9% stake in Algeria gas pipelines for 385 million euros

Published

on

November 27, 2021

MILAN (Reuters) -Italian energy group Eni has agreed to sell gas group Snam 49.9% of its stake in strategic pipelines carrying Algerian gas into Italy for 385 million euros ($436 million), the two companies said on Saturday.

The pipelines will be jointly controlled by the two companies, they said in a joint statement.

Italy imports more than 90% of its overall gas needs and Algerian gas currently accounts for around 30% of flows.

Advertisement

“This transaction allows us to free up new resources to be used on our energy transition path,” Eni Chief Executive Claudio Descalzi said.

Eni is working on spinning off a series of oil and gas operations into new joint ventures to help reduce debt and fund its shift to low-carbon energy.

Snam, which owns a 20% stake in the TAP pipeline that carries Azeri gas into Italy, makes most of its money from managing Italy’s gas transport grid.

It has pledged to spend more on new green business lines such as hydrogen and, like other gas grid operators in Europe, is upgrading its gas network to be hydrogen ready.

“In the future, North Africa could also become a hub for producing solar energy and green hydrogen,” Snam CEO Marco Alvera said.

Advertisement

The pipeline companies involved in the deal posted net income of around 90 million euros in 2020.

($1 = 0.8836 euros)

(Reporting by Stephen Jewkes, editing by Giselda Vagnoni)

Advertisement
Continue Reading
Advertisement

Trending