Telecom Italia SpA’s board proposed a share buyback of up to 400 million euros ($471 million) and a 1-for-10 reverse stock split, in order to review your asset profile after selling assets.
The board of directors on Tuesday announced the company’s first share buyback in years, linking it to proceeds from the sale of Sparkle, the undersea cable unit. Directors indicated that the reverse split seeks to attract a broader group of institutional investors, reducing the number of shares outstanding and curbing price volatility.
The measures, announced alongside preliminary annual results, mark a turning point for the former Italian telephone monopoly, which is restructuring after the sale of its fixed telephone network last year to a group led by KKR & Co. and other divestitures to reduce its debt. With reduced leverage and increased liquidity, management is looking to balance financial discipline with new payouts.
For all of 2025, Telecom Italia reported adjusted net debt of €6.85 billion after leasing commitments, representing a year-on-year reduction of €412 million. In a statement, the company highlighted the solid cash generation in the fourth quarter.
Revenue for the year amounted to €13.73 billion, while earnings before interest, taxes, depreciation and amortization after leasing costs reached €3.69 billion. in line with analyst estimates.
In January, shareholders approved a long-delayed plan to convert the company’s savings stock into common stock, a move that simplified the capital structure as CEO Pietro Labriola pushed through a series of measures to stabilize the company.
The Italian telecommunications market remains one of the most competitive in Europe, with four mobile operators locked in a prolonged price war that has squeezed their margins for years. Sector executives and investors anticipate further consolidation following a wave of deals, as operators seek scalability and more rational pricing.
Looking to the future, Telecom Italia forecasts revenue growth of 2% to 3% by 2026 and group Ebitda growth after lease adjustments of 5% to 6%.
Post-leasing equity free cash flow of approximately €1.8 billion is expected, including approximately €1 billion related to compensation for concession fees. Telecom Italia is also seeking further deleveraging, with a post-lease net debt/post-lease EBITDA ratio below 1.7 times.
