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Telecom Italia shares rise two percent after positive domestic sales growth

Reuters  |  MILAN 

(Reuters) - (TIM) shares rose 2 percent on Thursday after Italy's biggest group reported better-than-expected 1.7 percent growth in first-quarter domestic sales, lifted by solid performance from mobile operations and 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 imposed on the group as part of the so-called golden power decree.

(Reporting by Agnieszka Flak; editing by Francesca Landini)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 13:19 IST