Telecom Italia swings to 1.8bn net profit in 2016

MILAN: Telecom Italia said on Thursday it swung to a net profit of 1.8 billion euros ($1.9 billion) in 2016 from a net loss of 70 million euros the previous year, when it was hit by one-off items.

The company, which is 24 percent controlled by French media group Vivendi, said it would set up a new company to develop its broadband fibre network in non-economically viable areas.

The new company will be majority-owned by a financial partner that will be chosen in the coming months, it said.

Telecom Italia said it aimed to reach a fibre coverage in Italy of 95 percent in 2018, almost two years ahead of schedule.

It said it would offer a dividend for savings shareholders of 2.75 euro cents.

Telecom Italia gave preliminary 2016 numbers and its 2017-2019 business plan in February.