MILAN (Reuters) – Telecom Italia’s (TIM) core profit fell sharply in the first quarter hit by shrinking revenues in the group’s competitive domestic market, where demand for connectivity weakened after a pandemic-driven surge. TIM said domestic sales, which accounts for about 80% of group’s total revenue, fell by 7.7% to 2.85 billion euros, in line with an analyst consensus provided by the company. Organic earnings before interest, tax, depreciation and amortisation (EBITDA) after lease fell 16.3% to 1.17 in the January-March period compared with the same period the year before, also broadly i…