Telecom Italia modernizing network
Telecom Italia has returned to profit for the first time in three years, reports the Financial Times.
Net income climbed to $1.5 billion in 2014 after a loss of $735 million the year before when results were impacted by an impairment charge. Revenue fell almost 8% to $23.6 billion, with earnings before interest, tax, depreciation and amortization down a similar amount to $9.6 billion.
Italy’s largest telecom group has begun its largest investment to date to modernize its mobile and fixed broadband networks. Specifically, the operator recently announced a 3-year strategic plan under which it plans to invest about $15.8 billion to modernize its network infrastructure.
In addition, Telecom Italia revealed on March 18 plans to raise $2.18 billion though a bond issuance to refinance its existing debt. The company remains rated at junk status by rating agencies with net debt at $29.14 billion, only down slightly from the year before but still much higher than its market capitalization of about $21.8 billion.
SK Telecom to buy out SK Broadband in $627M deal
South Korean telecommunications company SK Telecom Inc. said on March 20 it plans to acquire the remaining 49.4% stake in Internet services provider SK Broadband in a share swap offer valued at $627.17 million.
In a regulatory filing, SK Telecom revealed its plans to offer 2.47 million treasury shares in exchange for SK Broadband shares it does not hold. SK Telecom currently has a 50.6% stake in SK Broadband.
SK Broadband investors can also sell their shares to SK Telecom for $4 per share, the company said.
