Telecom Italia 9M revenues drop 0.5%; net income rises 57.2%

5 Nov 2010

Telecom Italia has reported revenues of EUR19.89 billion (USD28.2 billion) for the nine months ended 30 September 2010. This figure represents a decrease of 0.5%, with EUR19.99 billion recorded in the same period a year earlier. Of the total, EUR15.03 billion was derived from Telecom Italia’s domestic interests, down 7.4%. Revenues generated by Telecom Italia’s Brazilian interest TIM Brasil Group increased 31.2% to EUR4.5 million, with the operator’s subscriber base increasing 18.5% year-on-year. EBITDA for 9M was EUR8.5 billion, down 0.6% on the corresponding period, while consolidated net income amounted to EUR1.8 billion, up 57.2%. In 9M 2010 fixed line revenues amounted to EUR10.5 billion, down EUR448 million (4.1%) while broadband generated EUR1.3 billion, up EUR54 million. Wireless revenues for the period came to EUR5.8 billion, down 10.4% compared to 9M 2009.

In operational terms, at 30 September 2010 fixed line retail accesses stood at 15.6 million, a reduction of 513,000 on the start of the year. The wholesale customer portfolio however grew to approximately 6.6 million accesses, up 423,000. Broadband subscribers totalled 9.0 million accesses, up 292,000, of which over 7.2 million were retail and 1.8 million wholesale accesses. Telecom Italia Mobile meanwhile claimed 30.6 million subscribers, an increase of 88,000 on the previous quarter.

Franco Bernabe, CEO of Telecom Italia, commented: ‘Telecom Italia’s commitment in pursuing its business transformation has delivered an improved revenue trend, primarily thanks to TIM Brasil. This confirms the strategic importance of Latin America where we have recently acquired control of Telecom Argentina, thus reinforcing the group’s international profile. Meanwhile, continuing rigorous cost control, together with sound cash flow generation, confirm that we are in line with our full-year profitability and debt reduction targets’.