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TI.A - Telecom Italia SpA News Story

$5.21 0.0  0.0%

Last Trade - 05/07/19

Large Cap
Market Cap £8.70bn
Enterprise Value £33.41bn
Revenue £13.61bn
Position in Universe th / 6651

BREAKINGVIEWS-Corona Capital: Enel, Office space, Online video

Fri 18th December, 2020 11:05am
(The authors are Reuters Breakingviews columnists. The opinions expressed are their own.) By Breakingviews columnists MILAN/LONDON/HONG KONG, Dec 18 (Reuters Breakingviews) - C orona Capital is a column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights. LATEST - Italian broadband - Paris offices - IQiyi fundraising FIBRE FEVER. Enel’s ENEI.MI early bet on fibre is paying off in the pandemic. Defying sceptics, Chief Executive Francesco Starace has secured an equity valuation of 2.65 billion euros from infrastructure specialist fund Macquarie MQG.AX for the 50% stake it holds in broadband startup Open Fiber. That gives it an enterprise value of around 7.1 billion euros, once about 1.8 billion euros of debt is added. An earn-out clause suggests the valuation could rise to above 8 billion euros if Open Fiber merges its network with that of rival Telecom Italia TLIT.MI , against an estimated book value of less than 500 million euros for the Enel stake. That looks chunky: a recent KKR KKR.N deal valued Telecom Italia’s last-mile network company at 7.7 billion euros, including debt*:nL8N2FY27X. But while Telecom Italia’s FiberCop is predicted to report 900 million euros of EBITDA next year, Open Fiber is barely at break-even. JPMorgan predicts that the network challenger could approach 700 million euros of EBITDA only in 2030. If the deal is indeed completed, Starace looks like the real winner. (By Lisa Jucca) NEARING THE BOTTOM. Sickly Paris offices could be headed for a revival. That’s according to U.S. property investor Tishman Speyer, which has splurged 750 million euros on three offices in the French capital in recent weeks, according to the Financial Times. The $97 billion fund, which owns New York’s Rockefeller Center, negotiated a 25% discount on the former headquarters of media group Canal+. Bargain-basement prices may not last long. Low-rise buildings in Paris are much better equipped for pandemic living as staff can use the stairs, unlike in London and New York where long waits for lifts are a stumbling block to a full return to office life. This has not been reflected in prices. London office prices have held up much better: Great Portland Estates GPOR.L said the value of its property portfolio only fell 6.6% from March to the end of September. Tishman Speyer is betting that this divergence may not last much longer. (By Aimee Donnellan) AGAINST THE STREAM. Online video service iQiyi IQ.O has become the latest U.S.-listed Chinese company to tap markets for capital. It rounded up $1.6 billion by selling shares and convertible bonds Despite the pandemic boost for streamers broadly, this fundraising was less about growth and more about fortification. Net debt stands at $1.7 billion for unprofitable iQiyi. The $13 billion company controlled by Chinese web search outfit Baidu BIDU.O has lost 30% of its market value over the last six months. A U.S. regulatory probe into its accounting hurt, as did disappointing third-quarter results Sales and subscribers dipped. Takeover talks with Alibaba 9988.HK , BABA.N and Tencent 0700.HK were also put on hold because of tighter oversight from Beijing, Reuters reported last month*:nL1N2ID0JU. That has left the shares trading below the $18 where they debuted in 2018. If iQiyi couldn’t capitalise on a big captive audience, things might get even harder for investors to watch. (By Jennifer Hughes) On Twitter - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ UPDATE-BREAKINGVIEWS-Corona Capital: Private jet deal*:nL8N2IX2TR ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Lisa Jucca, Jeffrey Goldfarb and Oliver Taslic)
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