Light Reading
Full-year revenues fall 1.5% year-on-year, while EBITDA slips 4.2%

Telecom Italia EBITDA Falls 4.2%

Light Reading
News Wire Feed
Light Reading
2/8/2013
50%
50%

MILAN -- The Telecom Italia Board of Directors, chaired by Franco Bernabè, yesterday examined and approved the Group’s Preliminary Financial Statements at 31 December 2012. Franco Bernabè commented: “The Group has succeeded in achieving revenue growth in 2012, while maintaining good profitability, among the strongest in the industry, also thanks to its domestic performance that has met all the targets for the year and reaffired its vital role as a key source of cash flow for the group. We can also look ahead with greater confidence thanks to the fresh regulatory approach taken by the EU to guarantee stability of wholesale copper prices and proper incentives for investment in new fibre networks. This new approach will allow us to act more effectively in the challenging competitive environment which the evolution of web-based services is producing.” TELECOM ITALIA GROUP PRELIMINARY RESULTS
Revenues in FY 2012 came to €29,503 million, down 1.5% from €29,957 million in 2011; the fall of €454 million is primarily due to the Domestic Business Unit, offset by improvements enjoyed by the Argentina Business Unit (+€564 million) and the Brazil Business Unit (+€134 million). In terms of organic variation, consolidated revenues rose by 0.5% (+€151 million). In detail, the organic variation in revenues is calculated by excluding:

  • the effect of foreign exchange rate fluctuations of -€569 million, mainly affecting the Brazil Business Unit (-€535 million) and to a largely negligible extent the Argentina Business Unit (-€55 million) and other Group companies (+€21 million);
  • the effect of changes to the consolidation area (-€14 million), largely due to sale of Loquendo (Domestic BU) on 30 September 2011 and Matrix (Other Operations) on 31 October 2012;
  • the effect of a €22 million reduction in revenues due to the settlement of business disputes with other carriers. EBITDA came to €11,665 million, down €506 million (-4.2%) on the previous year, with EBITDA margin of 39.5% of revenues (40.6% in FY 2011). In organic terms EBITDA fell by €246 million (-2.0%), 1 pp lower in proportion to revenues, down from 41.2% in 2011 to 40.2% in 2012, due to the greater weight of South American revenues, where margins are lower than for Domestic Business, and to higher mobile handset sales, aimed at a greater penetration of data services. Capex came to €5,196 million in FY 2012, of which €3,072 million for the Domestic Business Unit, a decrease of €899 million compared with 2011. In particular:
  • the Domestic Business Unit reported a fall of €1,113 million. Excluding FY 2011 investments in purchasing the rights to use LTE mobile telephony frequency bands (€1,223 million) there is a €110 million increase attributable in particular to the development of next generation networks (LTE and fibre) in part offset by the lower requirement in relation to delivery of new systems owing to the slowdown and contraction of fixed-line business;
  • the Brazil Business Unit reported an increase of €210 million (including a negative forex effect of €94 million), for the purchase of rights to use fourth generation (4G) mobile telephony frequency bands (€145 million) as well as investments to improve the quality of the network infrastructure;
  • the Argentina Business Unit reported capex in line with the previous year (+ €1 million already including a negative forex effect of €9 million). Besides the costs of client acquisition, expenditure was aimed at enlarging and upgrading broadband services to improve transmission capacity and increase access speed, traditional fixed-line access to meet demand and backhauling to support mobile access growth. Telecom Personal also invested primarily in increased capacity and enlargement of the 3G network to support Mobile Internet growth. Telecom Italia SpA
    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Interviews
    The New Wave of IP + Optical Integration

    11|21|14   |   04:29   |   (7) comments


    At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
    LRTV Huawei Video Resource Center
    Huawei Highlights at BBWF 2014

    11|20|14   |   3:40   |   (1) comment


    Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
    LRTV Huawei Video Resource Center
    How Will BCMS Stimulate Margin for Broadband Operators?

    11|19|14   |   6:52   |   (0) comments


    In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
    LRTV Huawei Video Resource Center
    SingleFAN3.0: Better Connected Experience

    11|19|14   |   3:06   |   (1) comment


    At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
    LRTV Interviews
    Basil Alwan Interview: The Road to Cloud

    11|19|14   |   09:09   |   (0) comments


    Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
    LRTV Documentaries
    FairPoint Makes a Fair Point About Analytics

    11|19|14   |   1:56   |   (1) comment


    The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
    LRTV Documentaries
    Analytics Lets C Spire Get to Know Subs

    11|19|14   |   3:01   |   (2) comments


    It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
    LRTV Interviews
    Nuage Branches Out With SDN: CEO Interview

    11|17|14   |   9:32   |   (0) comments


    Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
    Light Reedy
    Telecom Analytics Grows Up

    11|14|14   |   1:15   |   (4) comments


    The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
    LRTV Huawei Video Resource Center
    Huawei Compass

    11|14|14   |   3:17   |   (1) comment


    At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
    LRTV Huawei Video Resource Center
    Huawei's Cloud Strategy in European Region

    11|14|14   |   2:56   |   (1) comment


    At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
    LRTV Huawei Video Resource Center
    Huawei's Contribution on OpenStack

    11|14|14   |   5:58   |   (0) comments


    At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
    Upcoming Live Events
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 8-10, 2014, Reykjavik, Iceland
    February 12, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
    Hot Topics
    Bell Labs Chief Slams 'Toy' Networks
    Robert Clark, 11/19/2014
    $38.3M: Ain't That a Kik in the SMS
    Sarah Reedy, Senior Editor, 11/20/2014
    Do You Have a 2020 Vision?
    Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
    The New Wave of IP + Optical Integration
    Ray Le Maistre, Editor-in-chief, 11/21/2014
    Google, AT&T, BT Unite on Network Data Models
    Carol Wilson, Editor-at-large, 11/20/2014
    Like Us on Facebook
    Twitter Feed