Telecom Italia flies to Piazza Affari, scoring, since the opening, the highest rise of the entire Ftse Mib. The stock managed to gain more than 5% after the release of the preliminary results for 2011 and the update of the plan to 2014. As for the cut in the total dividend, which will drop this year to 900 million, the market had already discounted the news in past days. But let's get down to business.
2011 closes for the big name in Italian telephony with revenues of 29.958 million euros, up 8,7% compared to 2010. Ebitda is 12.246 million, up 7,3%, with an incidence on revenues of 40,9% (41,4% in 2010). Overall domestic revenues in 2011 amounted to 19.033 million, a decrease of 5,2% compared to the previous year (-4,8% the organic change). In detail, revenues from fixed telecommunications amounted to 13.542 million (-4,1%). In the mobile sector, revenues amounted to 7.114 million, down by 7,5% compared to 2010, but with a constant improvement trend.
Net financial debt at the end of 2011 amounted to 30.414 million euros, down by 1.054 million compared to the previous year. The reduction - explains a note from the group - "is all the more significant taking into account that the investment for the purchase of LTE frequencies (2011 million) weighed on the fourth quarter of 1.223". For this same reason, operating free cash flow at the end of 2011 amounted to 5.767 million, down by 446 million on an annual basis. As for estimates, for 2012 Telecom forecasts an adjusted net financial debt of approximately 27,5 billion euros, a target unchanged from the previous plan, which also did not include the disbursement for LTE frequencies. In 2013 debt should further decrease to around 25 billion.
The dividend payout will drop to 900 million euros from 1,2 billion last year, compared to the previous forecast of an increase of 15% per year. This was disclosed in the group's 2011 preliminary results statement. The group's executive chairman, Franco Bernabe, explains that “this dividend policy contributes to confirming the path to debt reduction outlined in the previous plan. Once this objective is achieved, shareholder remuneration will be able to grow again".
In a year characterized by “the slowdown of the main economies and the recessionary tensions of the mature ones – continues Bernabè – the group has achieved all the objectives indicated for 2011 at a consolidated level in terms of stabilizing turnover, profitability and operating cash generation ”.
The growth in Ebitda and consolidated revenues is linked “above all to the strengthening of the results of the activities in Brazil and Argentina”. In this way “the process of reducing net financial debt and the process of repositioning towards markets with better development prospects continue, both aimed at restoring the group to a growth profile”, concludes Bernabè.
