Telecom Italia to Keep Dividend Stable Despite 2018 Loss

   By Max Bernhard

Telecom Italia SpA (TIT.MI) will keep its dividend stable, despite reporting a 2018 loss, hit by billions of euros in one-off charges including write downs and restructuring costs, the Italian phone group said late Thursday.

The company reported a loss of 1.41 billion euros ($1.6 billion), compared with a profit of EUR1.12 billion in 2017. Earnings were hit by a EUR2.59 billion goodwill write-down in its Core Domestic and International Wholesale units, it said. Excluding one-off items, net profit for the year would have been EUR1.4 billion, it said.

Analysts had expected Telecom Italia to post a loss of EUR487 million, according to a FactSet-compiled consensus.

Despite the loss, Telecom Italia said it would keep its dividend at last year's level of EUR2.75 per savings share.

Vivendi SA (VIV.FR) and the U.S. hedge fund Elliott Management Corp., Telecom Italia's two largest shareholders, have been locked in a monthslong battle over the company's future. Elliott has pushed for a separation of Telecom Italia's fixed-line network against Vivendi's wishes.

A shareholders' meeting has been scheduled at Vivendi's request for March 29 to approve Telecom Italia's strategic plan and financial statements, Telecom Italia announced last month.

Revenue fell to EUR18.90 billion from EUR19.83 billion, mostly due to a depreciation of the Brazilian real compared with 2017, the company said.

Read more about the imbroglio surrounding Telecom Italia at https://on.wsj.com/2JndT7q (WSJ paywall) or https://bit.ly/2KuPhKY (NewsPlus).

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

February 22, 2019 02:18 ET (07:18 GMT)

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