TIM’s preliminaries show steady, if unspectacular growth

24 Jul 2003

The Telecom Italia Mobile Group [TIM.MI] has released its preliminary results for the first six months of 2003, showing a 6.7% rise in consolidated revenues to EUR5.5 billion, compared to the corresponding period of 2002. Gross operating profit rose by 5.5% to EUR2.6 billion, whilst operating income increased by 8.4% to EUR1.8 billion. The operator’s free operating cash flow stood at EUR1.8 billion at the end of June, up by almost 23% on 2002 levels. At the same date TIM had net debts of EUR700 million, down from EUR1.9 billion at the end of 2002. The Group reported 41.3 million cellular subscribers across its subsidiaries worldwide at the end of June, a rise of 1.1 million over six months, and was keen to highlight the fact that it had now reached a million customers at its Brazilian operations.

Despite the steady growth at its Latin American subsidiaries in Brazil, Peru and Venezuela, turnover from TIM’s domestic operations still account for the vast majority of Group revenues, reaching EUR4.5 billion in the first six months of 2003, an increase of 7.4% over the first half of 2002. Domestic gross operating profit reached EUR2.4 billion, with operating income standing at EUR1.8 billion. At 30 June 2003 TIM’s domestic subscriber base stood at 25.6 million, up from 24.2 million twelve months previously. TIM’s final results for the first six months of 2003 will be submitted for approval by the board of directors on 2 September 2003.