Telecom Italia 1H revenues drop 0.7%

6 Aug 2010

Telecom Italia has reported revenues of EUR13.22 billion (USD17.4 billion) for the six months ended 30 June 2010. This figure represents a decrease of 0.7%, down from EUR13.32 billion for the same period one year earlier. Of the total, EUR10.09 billion was derived from Telecom Italia’s domestic interests, down 7.4%. In contrast, revenues generated by Telecom Italia’s Brazilian interest TIM Brasil Group increased 2.1% to EUR2.87 million. EBITDA for 1H was EUR5.7 billion, up EUR186 million (a 3.4% increase) on the first half of 2009 when Telecom Italia reported a figure of EUR5.54 billion. Consolidated net income amounted to EUR1.2 billion, up EUR252 million (or 26.3%) compared with the first half of 2009.

In 1H 2010 fixed line revenues amounted to EUR7.05 billion, down EUR343 million (4.6%) from the same period of 2009. At 30 June 2010 retail accesses stood at 15.7 million, a reduction of 356,000 on the start of the year. The wholesale customer portfolio grew to approximately 6.5 million accesses, a rise of 297,000. As at 30 June 2010 broadband subscribers totalled 9.0 million accesses, up 217,000, of which over 7.1 million were retail and 1.8 million wholesale accesses. Revenues for Telecom Italia’s fixed-line unit were EUR3.1 billion, a EUR379 million drop compared to 2009. Broadband revenues amounted to EUR888 million, up EUR47 million with the total retail broadband portfolio exceeding 7.1 million accesses, an increase of 134,000 subscribers over the six month period. Wireless revenues for came to EUR3.9 billion, down 9.4% compared to H1 2009. At 30 June 2010 Telecom Italia Mobile claimed 30.5 million subscribers, an increase of 152,000 on the previous quarter.

Franco Bernabe, CEO of Telecom Italia, commented: ‘The positive results of 1H 2010, showing also an improved revenue mix, confirm the effectiveness of our repositioning strategy in the core markets, Italy and Brazil. The focus on high margin revenues together with efficiency gains and cost controls have enabled us to keep organic EBITDA substantially stable and raise our margin to 43.5%. These measures, together with effective financial management, allowed us to increase net profits by around EUR252 million to EUR1.21 billion, up 26% against the first half of 2009.’