MILAN (Reuters) - Telecom Italia (TIM) shares rose 2 percent on Thursday after Italy's biggest phone group reported better-than-expected 1.7 percent growth in first-quarter domestic sales, lifted by solid performance from mobile operations and broadband take-up.
The stock was up 2 percent at 0.79 euros by 0720 GMT, outperforming a 1 percent rise in Milan's blue-chip index.
"Mobile service revenues up 3.7 percent was the key positive surprise, materially outperforming competition. Strong fiber take-up," Morgan Stanley, which has an 'overweight' rating on the stock, said in a note.
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 amortisation (EBITDA) fell 4.9 percent to 1.89 billion euros ($2.23 billion), hit by provisions made for fines Italy imposed on the phone group as part of the so-called golden power decree.
(Reporting by Agnieszka Flak; editing by Francesca Landini)