Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private company listed on both “the Borsa Italiana”(the Italian stock market) and NYSE, it was founded in 1994 by the merger of several state-owned telecommunications companies.
In addition to its domestic leading position, the Group has a significant presence in Latin America, a market with large growth potential. Revenues from Brazil and Argentina count for 34% of today Group's revenues.
Abroad Group's focus is on Latin America. It operates in Argentina and Paraguay, providing fixed and mobile telephony services and internet through Telecom Argentina group.
In Brazil, TIM Brasil remains one of the major players in what now is a market with a great potential for growth.

Reasons why I have chosen Telecom Italy
Firstly I am interesting to explore the possibility of investing in the company, then I would maybe like to work for the company one day, and I say that knowing the international scenario in which Telecom Italia operates and the wide chances of growth especially in emerging markets as Latin America.
From this project I would also like to figure out if the growth possibilities in emerging markets can overcome the forecasts of not-so-good results in the domestic market due to what seems to be a long-term crisis scenario in Europe and Italy in particular.

Risk Management
The Telecom Italia Group is exposed to the following operating and financial risks in the ordinary course of its business operations. The main risks are: market risk, credit risk and liquidity risk.
Italy’s exposure to the sovereign debt crisis overshadowing the Euro area may cause a new weakening of the Italian economy, after the slight recovery that in 2010 and in 2011 had followed the heightened downward swing produced by the global economic crisis that began at the end of 2008. The Italian economy is facing a restrictive fiscal policy (a mix of spending cuts and tax increases) aimed at putting into place a long-term plan to reduce the budget deficit with the objective of balancing the budget by 2013.
Such restrictive fiscal policy pursues structural adjustments which guarantee the sustainability over the long term of public finances. Furthermore, the tight credit situation deriving from the growing problems of the banking sector in the Eurozone, contributes further to lowering the forecasts of growth for the next few years: the climate for investments remains difficult and the confidence of the consumer low.
In Brazil, on the other hand, the macro economic scenario is expected to show steady growth, supported by high levels of domestic and foreign investments, high consumption, falling inflation and a steady rate of exchange. The overall economic equilibrium has permitted the Central Bank to cut interest rates as a precautionary measure, in case the economy is affected by the global recession. At the moment, the Brazilian macroeconomic context seems to be fairly stable, although it is expanding more slowly than in the past, but any worsening of the situation could have an adverse effect on the demand for telecommunications services.
In Argentina, the economy is expected to grow this year, although at a lower rate than in the previous years when the country recorded strong economic expansion. Private consumption should continue to be the primary driver of the economy, however, the effects of the fall in agriculture production, of growing external restrictions and of a more conservative tax approach could give rise to growth that is in some ways lower but more balanced. In this context, inflation will continue to represent a pivotal element.
The telecommunications sector is generally regarded as being less cyclical than other sectors, since, in the business segment, telecommunications services are perceived as an effective tool through which companies can improve productivity. In the residential segment, on the other hand, they are becoming a factor of increasing importance in the budgets of family expenditures.
Furthermore, on a global scale, the telecommunications sector is being subjected to growing pressure from lateral competition by operators in the IT, Media and Devices/Consumer Electronics sectors, and by OTT operators which offer content and services via the internet to people who do not have their own TLC network. Because of this, the evolution of the telecommunications markets in the main countries in which they operate (Italy, Brazil and Argentina) may be influenced by the development of the competitive scenario with regard to these players.

Financial Performance and Targets
Telecom Italia (IT in NYSE) performed a loss in 2011 with a negative profit margin of -4.74% due to non-recurring events with operating margin at almost 23% . In 2010 and 2009 the operating income was around 8 bln $, performing profits.
In the last three years the company has been performing the same numbers but the recorded loss of this year. That can be considered a conjunctural fact due to, as I said before, nonrecurring events.
The company is trying to reduce is net financial position, that is shown as a net borrowing decrease in the cash flow from financing activities from -5 bln $ of two years ago to -1 bln $ of 2011. At the same time the company is investing, cash flow from investing operations is growing from -5 bln $ of two years ago to -7 bln $ of 2011.
Expectations for 2012-2014 are stable for what concern revenues and EBITDA, while the company will keep reducing its net financial position. From 2007 to 2013 the company will bring its net financial position from 36 bln euro to 25 bln. The expected cash flow generated from 2012 to 2014 are going to be 22 bln euro, 80% coming from the domestic market and 20% from Latin America.

Bibliography http://finance.yahoo.com/q/bs?s=TI http://www.telecomitalia.com
http://en.wikipedia.org/wiki/Telecom_Italia