Telecom Italia Unveils €400M Buyback, Raises Guidance

Telecom Italia Announces €400M Buyback and Upbeat Forecast

Telecom Italia has revealed a significant €400 million share buyback program and proposed a reverse stock split following the release of its full-year financial results. The company also issued positive guidance for its 2026 performance.

Financial Performance and Outlook

For the full year, the Italian telecom giant reported revenues of €13.7 billion, with its EBITDA after lease rising 6.5% year-over-year to €3.7 billion. Looking ahead to 2026, the company projects revenue growth of 2% to 3% and an EBITDA after lease increase of 5% to 6% from 2025 levels.

Shareholder Remuneration Strategy

The proposed €400 million buyback is a core component of the company's strategy to return capital to shareholders. This move is directly linked to the anticipated sale of its Sparkle unit, with plans to distribute approximately 50% of the proceeds through these buybacks.

Summary

Telecom Italia is signaling financial confidence through its shareholder return initiatives and positive forward-looking guidance. The market will be watching the shareholder vote on the reverse stock split and the finalization of the Sparkle transaction.

FAQ

Q: What is the size of Telecom Italia's share buyback plan?
A: The board has proposed a €400 million share buyback plan.

Q: What is the company's revenue guidance for 2026?
A: Telecom Italia projects group revenues to increase between 2% and 3% in 2026 from its 2025 base.

Source: Investing.com