The Tim group closed 2016 with revenues of 19,036 billion, down 3,5% compared to 2015. Revenues in the fourth quarter amounted to 5,097 billion and show an improvement compared to the same period of the previous year, not only in absolute terms (+256 million; +5,3%) but also in organic terms (+39 million; +0,8%) reversing a negative trend that had lasted for 18 quarters.
The 2016 EBITDA amounted to 8,018 billion (+14,4%), with an incidence on revenues of 42,1% (35,5% in 2015). In organic terms, it increased by 15,4%. The turnaround that began in April – explains Telecom – has generated a significant recovery, in just three quarters, of the main group indicators: turnover and EBITDA improve respectively by over 6 and 13 percentage points compared to the first quarter of the year.
At the end of 2016, the adjusted net financial debt of the Tim group amounted to 25,1 billion euros, down by 2,2 billion compared to 2015, thanks to solid cash generation. The liquidity margin remains high, standing at 12,5 billion (12 billion at the end of 2015), covering financial maturities for at least the next 24 months.
In 2016, the reduction in debt was guaranteed by the positive dynamics of operating management, by the benefits deriving from the conclusion of the sale of the Sofora - Telecom Argentina group and by the capital strengthening deriving from the conversion into Tim shares, in November , of the Mandatory Convertible Bond for 1,3 billion. On the other hand, the level of debt was negatively influenced by the trend in the Brazilian exchange rate.
The target of 600 million euros for the overall reduction in domestic cash costs envisaged by 2018 in the three-year plan, presented by the Tim group in February 2016, was achieved in the last nine months of the year alone. This was underlined by a note from the group which today approved the preliminary results for 2016. Group investments of 2016 billion were made in 4,9 and fiber and LTE coverage of approximately 60% and over 96% respectively were achieved in Italy. exceeding targets and achieving efficiencies.
In detail, the domestic EBITDA amounts to 6,7 billion. Exceeded the low single digit growth target on an organic basis excluding non-recurring items, recording +4,5% (mid single digit) for the year. Organic growth in the fourth quarter alone was 8,4% (+13,6 percentage points compared to -5,2% in the first quarter of 2016).
In Italy there was an acceleration in the growth of revenues from mobile services, with +3,1% in the last quarter of 2016. Revenues from fixed lines (+1,5%) became positive in the fourth quarter, also supported by innovative offers of enabling products (smart TVs, set-top boxes, connected devices). Strong decrease in line losses in the fixed market, which fell to -83 thousand units in the last quarter, down by 41% compared to the figure of -140 thousand units recorded in the first quarter of 2016.
As part of the equity investment rationalization program, the Tim group starts the process of integrating the wholly owned subsidiary Tim Real Estate into the parent company. This was decided by today's board of directors. The corporate integration operation is expected to be completed by the end of the summer.
