Telecom Italia Reports Q2

MILAN -- Consolidated earnings: €1,211 million (+26% with respect to H1 2009)
Net cash flow: €370 million (Approx. +€700 million with respect to H1 2009)
Steady and continued recovery of organic service revenues in line with the strategic plan: -3.4% in Q2 2010, -4.1% in Q1 2010, -6.2% in Q4 2009

Bernabè: “Rigorous operational control and an effective financial management enable Telecom Italia Group to close the first half of 2010 with profits up against the same period of last year. The improved revenue mix, stabilisation of Ebitda and reduced debt confirm we are in line with our Plan"

Revenues: €13,223 million, down 0.7% compared with H1 2009; organic variations is -5.1%
EBITDA: €5,733 million (+3.4% compared with H1 2009)
Organic EBITDA: €5,749 million (stable compared with H1 2009)
Organic EBITDA margin: 43.5% (41.3% in H1 2009; +2.2 pp)
EBIT: €2,881 million (+7.3% compared with H1 2009)
Adjusted net financial position: €33,579 million, down €370 million on 31 December 2009 (€33,949 million) after the distribution of dividends of over €1 billion; -€1,280 million compared with 30 June 2009 (€34,859 million)

Second Quarter 2010 Results

Revenues: 6,810 million, improved compared with Q1 2010; organic variation is -5.3% against Q2 2009
EBITDA: €2,907 million (+3.5% against Q2 2009)
Organic EBITDA: €2,913 million (-0.4% against Q2 2009)
Organic EBITDA margin: 42.8% (+2.1 pp against Q2 2009)
EBIT: €1,473 million (+10.7% against Q2 2009)
Net income: €610 million (+22.2% against Q2 2009)
In July the company paid out €418 million for the Sparkle case, already covered by a provision inthe previous year.
Agreement approved with Argentine partners on Sofora

The preliminary results for the first half of 2010 will be illustrated to the financial community during a conference call scheduled for 4 pm (Italian time). Journalists may listen to the conference call, without asking questions, by calling: +39 06 33168.

Telecom Italia (TIM)