A sharply higher tax bill and a fall in domestic sales at its mobile division pushed net profit at Telecom Italia down nearly 14 per cent in the first half of this year.

Revenues also fell slightly and there was a reduction of nearly €2bn in the group’s high net debt position. Telecom Italia’s headline numbers were slightly ahead of market expectations, but investors appeared unimpressed, sending the company’s shares nearly 4 per cent lower in Milan trading after the announcement of the figures.