The company said its home market has been hit hard by Italy's struggle to recover from the eurozone debt crisis, with fresh data showing growth had contracted for a second month running, throwing the country back into recession.
Telecom Italia said in a statement that it continued to be affected by the recessionary tensions in the domestic market, where signs of recovery are still very weak and, when combined with a slowdown in economic growth in Latin America, the outlook remained gloomy.
However, it said it will continue the in-depth examination of the strategic options in Brazil, where its asset TIM Participacoes expects to see a rise in revenues this year.
The company posted a net loss of €1.4bn in the same period last year, after deciding to write down goodwill by €2.2bn.
The first half results came amid a period of upheaval across the European telecommunications sector.
Earlier this week French media group Vivendi received an offer from Spanish group Telefonica which could enable it to get a slice of Telecom Italia. Vivendi received a firm bid worth €6.7bn for its Brazilian subsidiary GVT which, if accepted, would open the door to it buying 8.1% of Telecom Italia.
Source: AFP via I-Net Bridge
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