. 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.
In addition to the conventional financial performance indicators contemplated under IFRS, Telecom Italia Group uses certain alternative performance measures in order to give a clearer picture of the trend of operations and the company's financial position. These are: EBITDA; EBIT; organic difference in revenues, EBITDA and EBIT; accounting and adjusted net financial debt. For further details please see the attachment “Alternative performance measures”.
The Telecom Italia Group First Half Financial Report at 30 June 2010 was drafted in accordance with art. 154–ter (Financial Reporting) of Leg. Decree 58/1998 (Unified Finance Law - TUF) and subsequent amendments and supplements and prepared in accordance with the international accounting principles issued by the International Accounting Standards Board and approved by the European Union (IFRS), as well as the provisions of art. 9 of Leg. Decree 38/2005.
The accounting and consolidation principles adopted in the preparation of the Interim Statements at 30 June 2010 were consistent with those used for the Consolidated Annual Statements at 31 December 2009, with the exception of certain new Principles/Interpretations adopted by the Group from 1 January 2010. These new Principles/Interpretations have no impact on the Interim Consolidated Statements at 30 June 2010.
Note that restatements have been made to the economic and financial data for H1 2009 provided for comparison to correct errors from previous years - as defined by IAS 8 (Accounting policies, changes to accounting estimates and errors) – in relation to the Telecom Italia Sparkle case described in detail in the Telecom Italia Group Consolidated Statements at 31 December 2009 (impacts on 1H 2009 are described here attached). Beginning with the Telecom Italia Group Interim Consolidated Statements at 30 June 2010, following a detailed review of the indirect taxes paid by the Group in the various jurisdictions and also in view of the forthcoming adoption by Tim Brasil (a Group company) of IFRS accounting principles, certain taxes paid in Brazil have been moved from the item "Other operating costs" to the items "Revenues" and "Other income". Further small classification changes were also made resulting in a restatement of the comparable periods.
Note that the section "Outlook for the 2010 financial year", contains forward-looking statements about the Group’s intentions, beliefs and current expectations with regard to its financial results and other aspects of operations and strategies. Readers should not place undue reliance on such forward-looking statements, as final results may differ significantly from those contained in the statements owing to a number of factors, the majority of which are beyond the Group’s control.
Finally, please note that the limited audit work by our independent auditors on the Telecom Italia Group Consolidated Half-year Financial Statements at 30 June 2010 has not yet been completed.
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