Telecom Italia first quarter earnings fall on golden power provisions

Telecom Italia (TIM) on Wednesday reported a bigger-than-expected drop in first-quarter earnings, hit by provisions made for fines Italy imposed on the phone group as part of the so-called golden power decree which the group is appealing. In the first set of results after activist fund Elliott wrestled board control from top shareholder Vivendi, TIM said comparable earnings before interest, tax, depreciation and amortization (EBITDA) fell 4.9 percent to 1.89 billion euros ($2.23 billion). Italy's biggest phone group said comparable sales fell 1.6 percent to 4.74 billion euros, compared with expectations of 4.69 billion euros, hit by falling revenue in its only foreign market Brazil.