Telecom Italia posted impressive Q4 results wherein net profit reached 444 million euros ($561 million) from 228 million euros posted a year ago. Sales stood almost stagnant at 7.76 billion euros.

“As 2008 unfolded, the group staged a significant turnaround. The excellent results we posted in the final quarter of the year enabled us to hit the targets we set ourselves,” said Chief Executive Officer Franco Bernabe.

The company’s net debt fell to 34 billion euros at the end of 2008 from 35.8 billion euros in the previous quarter ended September 30. As per the company, the ratio of net debt to EBITDA fell to 2.99 times at the end of December from about 3.06 times at the end of 2007. 

The company said that cash reserves and syndicated credit facilities are sufficient to cover refunding requirements for at least the next 12 to 18 months. Telecom Italia has access to long-term credit lines of about 6.5 billion euros, it said.

Organic EBITDA in the quarter rose 2.2 percent to 2.74 billion euros and organic earnings before interest and tax gained 3.7 percent to 1.26 billion euros.

The company reduced the dividend on ordinary stock to 5 cents from 8 cents a year earlier, and the payment on savings stock to 6.1 cents from 9.1 cents in 2008.

Telecom Italia‘s shares rose 0.3 percent to 96.65 euro cents.