In a statement, Milan-based Pirelli said its net profit, including discontinued operations, rose to 198.3 million euros ($274.13 million) from 193.1 million euros a year before. The tire-to-real estate group said its first-half net profit from continuing operations stood at 181.2 million euros ($250.49 million), up 48.6 percent from 121.9 million euros a year earlier.

In April, Pirelli agreed to sell its indirect stake in Telecom Italia SpA through holding company Olimpia to Spain's Telefonica SA and a group of Italian financial heavyweights in a much-awaited deal from which it will cash in 3.3 billion euros ($4.56 billion). The deal is awaiting approval from Brazil's telecoms regulator.

Pirelli's shares have been recently boosted by speculation that the company is considering distributing part of the Telecom proceeds to its shareholders.