Telecom Italia Posts Slide in Net Profit

Italy's largest telecommunications operator said 2006 net profit stood at euro3 billion (US$3.9 billion) from euro3.2 billion a year earlier. The result was slightly above the euro2.96 billion (US$3.88 billion) average estimate of ten analysts polled by Dow Jones Newswires.

It said full-year revenue rose 4.5 percent to euro31.3 billion (US$41 billion) from euro29.9 billion in 2005, mainly driven by European broadband and Brazilian mobile.

Italy's former monopoly Thursday confirmed its dividend policy, proposing a 2006 dividend of euro0.14 (US$0.18) a share, unchanged from a year before.

Telecom Italia, which is coming off a management shakeup earlier this year, is schedule to unveil its three-year business plan on Monday.