MILAN, May 11 (Reuters) - The head of Telecom Italia
(TIM) said the company's service business is "already
sustainable" as a standalone entity and is expected to generate
strong core profit this year.
Chief Executive Pietro Labriola is seeking a turnaround of
the debt-laden former phone monopoly through the sale of the
group's domestic landline grid, the company's most prized asset,
to slash its 26 billion debt pile amid rising interest rates.
But his efforts have been thwarted so far by valuation
issues, with top investor Vivendi calling into question
the sustainability of the remaining business.
Speaking to analysts, Labriola said the service part of the
company's business, which includes its domestic consumer and
enterprise service operations and TIM's Brazilian unit "is
already sustainable" as a separate entity.
Labriola said the service arm would generate "combined
pro-forma core profit after lease significantly above 3 billion
euros in 2023".
(Reporting by Elvira Pollina
Editing by Keith Weir)
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