Telecom Italia posts EUR 4.7 bn loss for 2011
(MILAN) - Telecom Italia posted Thursday a net loss of 4.726 billion euros ($6.27 billion) for 2011, as worsening economic prospects forced it to make a 7.3 billion euro goodwill write-down on its domestic business.
"The goodwill write-down was made necessary by the deterioration of the macroeconomic outlook and of the financial markets condition," Executive Chairman Franco Bernabe said in a statement.
"The write-down has no financial consequences and no impact on the group's debt reduction plans," he said.
Bernabe said that reserves of over 7.0 billion euros "enables us to pursue the dividend policy announced in the 2012-2014 plan" despite the loss.
The Italian giant has been struggling to cut its debt from over 30 billion euros.
It described 2011 as "a difficult year for the international economy, and even more so for Italy."
Shares in the company ended down 2.65 percent at the close of the market.
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