Positive numbers for Telecom Italia in the third quarter. Consolidated net income rose to 807 million, up 32,7% year on year. Revenues amounted to 7,516 billion (+12,6%), the EBITDA to 3,198 billion (+16,6%) and the EBIT to 1,888 billion (+32,7%).
Sui nine monthson the other hand, the net loss amounted to 1,206 billion, with a decrease of 3,025 billion compared to the same period of 2010. However, excluding the negative impact of the goodwill write-down, profit would amount to 1,976 billion, up by 157 million ( +8,6%), again on an annual basis. Revenues amounted to 22,059 billion, an increase of 10,9%. In terms of organic change, the growth in consolidated revenues was 1,9%. Lastly, adjusted net financial debt amounted to 29,948 billion, with a reduction of 1,52 billion compared to 31 December 2010.
“The effectiveness of the operational and financial management of the group allows for confirm the targets announced to the market“, announced the executive president, Franco Bernabè. At the end of 2011, Telecom Italia's net financial debt is expected to be approximately 30,7 billion, considering the costs of the tender for the use of mobile frequencies in LTE technology which amounted to 1,2 billion.
Excluding this impact, the debt target remains confirmed at 29,5 billion. Revenues and organic Ebitda should remain substantially stable compared to 2010. Industrial investments are also confirmed, at around 4,8 billion.
“The first months of 2011 were full of events for the group – underlines Bernabè again – the LTE frequencies in Italy, the acquisition of Aes Atimus in Brazil, the capital increase of Tim Participacoes and the strengthening of the economic interest of Telecom Argentina, confirm the progress in our strengthening strategy in core markets. The improvement in operating results on the domestic market and in Latin America also continues and the group's cash generation is further strengthened, thanks to which Telecom achieves a strong reduction in debt”.
The repercussions are inevitable at Piazza Affari. After the publication of the accounts and the confirmation of the targets, the group's stock jumps to the top of the Milanese stock market, gaining almost 4%.
Meanwhile, Inversiones Milano, a wholly owned subsidiary of Telecom Italia, has purchased 14,48 million class B shares of Telecom-Argentina at a price of 20,5 Argentine pesos per share. The value of the transaction was equal to 296,84 million Argentine pesos (equal to approximately 51 million euros). Through this operation, the economic interest in Telecom Argentina of the Telecom Italia group rose to 22,61%.
