(Reuters) – Italy’s Telecom Italia (TIM) on Wednesday cut its forecast for 2021 organic earnings before interest, tax, depreciation and amortisation after leases (EBITDA-AL) for the domestic business unit due to lower wireline revenue.
The country’s biggest telecoms group partly attributed the underperformance of the wireline business to the working of its partnership with sport streaming service DAZN.
Earlier this year, TIM entered into a 1 billion euros ($1.13 billion) deal with DAZN to push its broadband and pay-TV services.
TIM is now looking to cut the cost of the deal with DAZN after the accord to distribute Italy’s top flight soccer league matches lifted less than expected revenues.
TIM, Europe’s sixth largest telecoms group, said it expects Group EBITDA-AL for 2021 to be higher than 5.4 billion euros due to the growth of its Brazil business unit.
After the 435 million euros payment for licences, the company’s adjusted consolidated net financial debt AL is expected to be around 17.6 billion euros.
($1 = 0.8857 euros)
(Reporting by Shivani Tanna and Vishal Vivek in Bengaluru; Editing by Subhranshu Sahu)
