Investing.com – Tim’s (BIT:) shares plummeted on the today after the release of its first quarter 2024 financial results. On Thursday, Telecom Italia (BIT:) (BIT) stock dropped by 5.71% compared to the previous day’s €0.23 per share, with the company’s shares having fallen as much as 9% to €0.223 earlier in the morning.
Despite an increase in revenue (+1.2%) and EBITDA (+1.6%), analysts are concerned about the Italian market figures, which pose complex challenges for the company’s future. Revenue growth was driven by the company’s Brazilian division (+8.1%), while the Italian business saw a 1.3% year-over-year decline in the quarter due to a decrease in mobile and broadband subscribers.
Moreover, the company’s future plans are burdened by a high level of debt, which has reached €21.4 billion, an increase of €1 billion compared to December 31, 2023.
According to Bloomberg analysts, today’s decline is “a sign of investor concerns over the persistent challenges in the Italian market. The losses come as the company approaches the sale of its network to the investment fund KKR, a strategic move that could redefine the future of the telecom operator, transforming it into a service provider comparable to its competitors.”
The stock’s fall comes at a time when it was still attempting to recover from the March 7 collapse, which occurred after the presentation of the new industrial plan through 2026. On that occasion, Tim’s shares lost almost 24% of their value in a single session, with 13% of the capital changing hands.
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