Telecom Italia H1 earnings down 24 per cent

ROME: Telecom Italia SpA said on Friday that first-half net profit fell 24 percent from a year earlier due to restructuring costs and increased competition in Brazil and Germany.

Italy's largest telecommunication operator said its net profit in the period that ended June 2008 was euro1.14 billion (US$1.72 billion), down from euro1.5 billion a year earlier.

First-half revenue was euro14.83 billion (US$22.35 billion), down 3.3 percent from the same period a year earlier. The company's CEO Franco Bernabe said the group's results were in line with expectations and industry trends.

He said early retirements had cost the company euro300 million (US$452.22 million) while regulatory changes lowered revenues byeuro400 million (US$602.96 million)

``Outside of these development, the group's earnings and financial performance on the domestic market were on target,'' Bernabe said in a statement, citing signs of growth in the fixed and mobile services.

The company did not release quarterly data. Telecom Italia shares were up 4.36 percent at euro1.149 (US$1.73) on the Milan stock exchange following the results announcement.