Telecom Italia 1Q11 revenues increase 10.3%

6 May 2011

Telecom Italia (TI) has reported revenues of EUR7.07 billion (USD10.43 billion) for the three months ended 31 March 2011, up 10.3% from the EUR6.41 billion reported in 1Q10. Of the total, EUR4.6 billion was derived from TI’s domestic interests, down 7.6% year-on-year. Revenues generated by the group’s Brazilian interest TIM Brasil Group increased 24.4% to EUR1.65 billion, with the operator’s subscriber base increasing 24.7% year-on-year, to 52.8 million. EBITDA for 1Q11 was EUR2.93 billion, up 3.6% on the corresponding period in 2010, while consolidated net income amounted to EUR549 million for the quarter, down 8.7% compared to 1Q10. CAPEX for the first quarter of 2011 amounted to EUR901 million, down EUR141 million year-on-year; this figure represents 12.7% of company revenues for the period.

In operational terms, at 31 March 2011 domestic fixed line retail accesses remained flat at 15.1 million. Broadband subscribers totalled 9.1 million accesses, of which 7.2 million were retail customers, and 1.9 million were wholesale accounts. Telecom Italia Mobile meanwhile claimed 31 million subscribers in its home market.

Franco Bernabe, CEO of Telecom Italia, commented: ‘The reshaping of the organisation with a sharper focus means that the group is well placed to meet the challenges of the next three years and reap the full benefits of the efforts made thus far. The first quarter results bear out the strategy of reinforcement in Latin America and domestic repositioning. The key domestic operational indicators confirm the recovery of competitiveness in the mobile segment which began last year, and the valorisation of the fixed-line business: over the last twelve months we have seen TIM customers begin to grow again while the gradual loss of fixed line subscribers has been halted’.