Telecom Italia-DAZN deal averts watchdog precautionary measures

Last week, TIM pushed back a goal to stabilise core profits this year, citing higher costs linked to the start up of the DAZN deal, while it confirmed the target to stabilise its domestic revenue this year. TIM, whose main shareholders are French media group Vivendi and Italian state lender CDP said late on Tuesday its core profit after lease costs fell to 1.43 billion euros in the April-June period, versus an analyst consensus provided by the company of 1.44 billion euros.

Italy's competition watchdog on Wednesday accepted amendments to a deal between Telecom Italia (TIM) and sports streaming service DAZN that would avert precautionary measures being imposed on their technical and distribution partnership. The proposed changes and measures, including a pledge to make TIM's pay-TV offer with DAZN's service available to clients of other telecoms operators from Aug. 1, would prevent irreparable damage to competition ahead of the start of Italy's top-flight Serie A soccer season, the watchdog said.

Aiming to promote its fast broadband and pay-TV services, TIM sealed a deal with DAZN, which holds the rights to screen Serie A matches over the next three seasons. The watchdog, which opened its inquiry earlier this month after complaints from TIM's rivals, said it would monitor the implementation of the companies' pledges, while continuing its probe which must be concluded by June 30, 2022.

Like other European rivals, TIM has been facing growth issues as the coronavirus pandemic has added to the long-standing challenge of increasing competition in its domestic market. Last week, TIM pushed back a goal to stabilise core profits this year, citing higher costs linked to the start up of the DAZN deal, while it confirmed the target to stabilise its domestic revenue this year.

TIM, whose main shareholders are French media group Vivendi and Italian state lender CDP said late on Tuesday its core profit after lease costs fell to 1.43 billion euros in the April-June period, versus an analyst consensus provided by the company of 1.44 billion euros. Total group's revenues rose for the first time since the third quarter 2018 at 3.815 billion euros in the period, up 1% from the previous year, helped by operations in Brazil, against a forecast of 3.759 billion euros.

TIM shares are up 1.8% by 09015 GMT compared with a 0.6% rise in Italy's blue chip index.

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