TIT IM

Telecom Italia SPA

TMT


Presented:12/18/2017
Price:€0.74
Cap:$17.23B
Current Price:€0.25
Cap:$5.83B

Presented

Date12/18/2017
Price€0.74
Market Cap$17.23B
Ent Value$51.61B
P/E Ratio12.24x
Book Value€1.03
Div Yield0%
Shares O/S21,067.16M
Ave Daily Vol106,011,721
Short IntN/A

Current

Price€0.25
Market Cap$5.83B
Telecom Italia SpA engages in the provision of telecommunication and Internet services, digital contents, and cloud services. It operates through the following business segments: Domestic, Brazil, Media, and Other Operations. The Domestic segment includes operations in Italy for voice and data services on fixed and mobile networks for retail and wholesale customers; the international wholesale through Telecom Italia Sparkle; and products and services for information technology through the Olivetti group. The Brazil segment covers the mobile and fixed telecommunications operations in Brazil. The Media segment specializes in the management of digital multiplexes. The Other Operations segment consists of finance companies and other minor companies not strictly related to the core business. The company was founded in 1994 and is headquartered in Rome, Italy.

Publicly traded companies mentioned herein: Iliad SA (ILD FP), Telecom Italia S.p.A. (TIT IM), Vivendi SA (VIV FP)

Highlights

The presenter is long Telecom Italia (TIT IM; “TI”). which has a “near monopoly” in the Italian telecom market. Over the next 12 months, he thinks the upside potential for the stock, which presently trades at just €0.74 (4x the presenter’s forward EBITDA estimate, and a 21% FCF yield), is among the best in his portfolio for 2018. He likes Vincent Bolloré’s involvement, and thinks there could be a near-term - early 2018 - catalyst in the form of clarity on what, if anything, Xavier Niel’s Free can do in Italy. With the setup materially different than the scenario in the French market, which Niel effectively disrupted a decade ago, there is the potential for TI’s stock to return to the mid-€1s.

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Idea Discussion

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