MILAN, May 4 (Reuters) - Shares in Telecom Italia rose more than 2 percent on Thursday after Italy’s biggest phone group reported a better-than-expected 16 percent rise in quarterly core earnings, helped by cost cuts and strong results from its domestic operations.
“Q1 was very strong, with a 2 percent group revenue and EBITDA beat,” Morgan Stanley said in a note.
The company, controlled by French media group Vivendi , said first quarter earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 1.99 billion euros ($2.17 billion), compared with the 1.95 billion euros of an analyst consensus provided by the company.
Sales at the former telecoms monopoly rose 8.5 percent to 4.82 billion euros, also above expectations.
By 0707 GMT, the stock was up 1.5 percent, compared with a 0.6 percent fall in Milan’s blue-chip index. ($1 = 0.9191 euros) (Reporting by Agnieszka Flak)