Telecom Italy closes 2014 with revenues consolidated for 21,573 billion, a decrease of 7,8% compared to 2013. The company communicated it, after yesterday the Board approved the preliminary results. If you exclude the exchange effects (worth a good 565 million) and the scope of consolidation, revenues fell by 5,4% on 2013. The accounts and the 2015-17 industrial plan will be presented today in London at 12 noon Italian time.
THEEbitda consolidated 2014 stood at 8,786 billion (-7,9% on 2013) with an incidence on revenues of 40,7% (40,8% in 2013). In organic terms, the decrease was reduced to 6,8% compared to the previous year. L'net financial debt at the end of 2014 it was 26,651 billion, down by 156 million euro on the year.
As for the investments, last year they rose by 584 million on 2013, up to 4,984 billion (including the acquisition of the 700mhz license in Brazil), with an increase of 13,3% on an annual basis. “The impetus in the development of ultrabroadband networks – writes the company – has allowed the group to reach a customer base of over 1,3 million LTE and 231.000 fiber optic customers at the end of 2014”.
In the 2014 cash flow of the operating management of the Telecom group was positive for 3.174 million euros (against 4.803 million in 2013). The margin of liquidity as at 31 December 2014 it was equal to 13,1 billion euro (13,6 billion euro as at 31 December 2013) and allows for coverage of the group's financial liabilities maturing beyond the next 24 months.
Furthermore, according to press rumors, Telecom's Board of Directors has frozen the project to enter with a majority stake in the capital of Metroweb and approved a stand-alone industrial plan for the next 3 years, envisaging, however, an increase in investments in Italy up to 10 billion euro. The project would have led to the exclusion of the Metroweb network in Milan, to avoid the major antitrust problems with Telecom, but would still have got stuck on the problem of control of the Metroweb-Telecom Italia newco, which would have had to develop the fiber network throughout Italy.
Yesterday the Telecom board also approved the incorporation of Telecom Italia Media (78% controlled) with the following exchanges: 0,66 Telecom Italia shares for each Telecom Italia Media share and 0,47 savings shares of the parent company for each savings share of the subsidiary. No cash adjustments are foreseen and the operation, which also involves the delisting from Piazza Affari, will be completed within the third quarter of this year. TI Media shareholders will have the right of withdrawal with a share price of €1,055 for ordinary shares and €0,6032 for savings shares. This is the average value of the closing prices of the shares in the 6 months preceding the publication of the notice calling the Telecom Italia Media shareholders' meeting called to approve the transaction.
Today, about an hour after the start of trading, the Telecom Italia share on the Stock Exchange gains 0,4%, to 1,028 euros, while that of TI Media drops 2,3%, to 1,026 euros.
