Tim closes the first half of 2018 in line with the previous year but does so on an organic basis, i.e. excluding non-recurring charges for 121 million, among which the provision for the fine due to the failure to communicate control by Vivendi stands out (74,3, XNUMX million) against which an appeal to the Tar is pending. THE total consolidated revenues for the semester – explains the statement released by the company led by Amos Genish – “are supported by revenues from services at Group level (8,8 billion euros, +1,9%), which both in Italy and in Brazil recorded positive performances (respectively 6,9 billion euros, an improvement of 0,8% and 1,9 billion euros, +6,0% YoY). The half-year profit is 618 million.
However, an analysis of comparable data, accounting principles being equal, shows revenues down (-2,7%), Ebitda down (-4,8%) and profit at 554 million (against 596 million).
The Board has also decided to evaluate the strategic options on the subsidiaries, as requested at the time by the Elliott Fund. In pole position in this case would be Sparkle, the subsidiary for international wholesale traffic. The board of directors – announces the Tim press release – “has examined the issue of commitments, not envisaged in the plan, which may derive from participation in the 5G tender, and has launched a process of evaluating the strategic options of its investees, confirming the continuation of the process of sale of Persidera”.
In the second quarter of the year, the group notes, revenues from services on the domestic side held up despite the impact deriving from the return to monthly invoicing, recording a figure substantially in line with the period of the previous year (-0,4% on an organic basis). Tim benefited from the general positive trend of the fixed-line sector linked to the strong recovery of investments in ultra-broadband in 2017, a year which saw the overall expenditure on services by businesses and households, surveyed by Agcom, for the first time in growth (+1,7%) over the past 10 years.
Organic Ebitda, net of the non-recurring component and the other "one-offs" - explains the group press release - is equal to 4 billion euros and presents a positive change of 2 million euros compared to the same period of 2017. But theComparable Group Ebitda for the semester drops to 3,9 billion euros and discounts the negative effect of the Domestic component (-4,8%) which paid the bill for the Solidarity agreement renewed only at the end of June 2018 and the impact of the return to monthly billing, in addition to the new European regulation on roaming (since June 2017) and other regulatory aspects.
In the second quarter of the year, however, the positive evolution of the domestic mobile segment, with revenues growing by 1,6%, supported in particular by revenues from retail services (+0,5%). Tim declares LTE coverage on 98% of the population and, in the fixed line, ultra-broadband coverage equal to 80% of the housing units.
Il Capex reached 740 million in the second trimester and the net cash generation 396 million, making it possible to reduce debt by 176 million. Net debt fell to 25,17 billion as at 30 June against 25,3 billion as at 31 December.
However, an analysis of comparable data, accounting principles being equal, shows revenues down (-2,7%), Ebitda down (-4,8%) and profit at 554 million (against 596 million).
GOVERNANCE AND THE CEO
After the tensions that preceded the board meeting on the half-yearly accounts, the managing director Amos Genish seems to have found a truce with the Elliott Fund. It will now be necessary to see if it is a question of true peace or "armed" peace pending future developments. Having set aside for now the question of supporting the CEO with a general manager who would give greater guarantees to the requests of the American fund, during the course of the Board of Directors' meeting, the procedure for related parties was only refined. And, as the final release explains, the definition of the internal governance of the Board continued it was decided to appoint the Director Dante Roscini as Lead Independent Director, to support the (independent) Chairman in coordinating board activities.
However, the tension remains high and this is confirmed by the outburst of a Vivendi spokesman with Reuters, in which he affirms that the management since the arrival of the Elliott Fund "is in chaos" so much so that the French group has not shelved the idea of convening a new assembly to elect another Board of Directors.
