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compared to the same period of 2010 (-2.2% in the fourth quarter of 2011; -6.5% in the third; -7.6% in
the second and -12% in the first). Revenues from services show an organic change of -8.7% compared to
2010 (-7.1% in the fourth quarter of 2011 compared to the same period of 2010; -7.5% in the third;
-8.7% in the second and -11.7% in the first).
The following table shows the trend of revenues in the major areas of business:
2011 2010 Change
(millions of euros) % of total % of total amount %
Outgoing voice 3,600 50.6 4,033 52.4 (433) (10.7)
Incoming voice 1,117 15.7 1,358 17.7 (241) (17.7)
VAS (value-added services) 2,038 28.6 2,045 26.6 (7) (0.3)
Handsets 359 5.1 256 3.3 103 40.2
Total Mobile Telecommunications
Revenues 7,114 100.0 7,692 100.0 (578) (7.5)
EBITDA
─ ● ─
EBITDA of the Domestic Business Unit is 9,243 million euros in 2011, down 150 million euros compared
to 2010 (-1.6%). The EBITDA margin is 48.6% and an improvement compared to 2010 (+1.8 percentage
points). The contraction in revenues impacted EBITDA and was offset in part by selective control over
fixed costs which produced cost containment and reduction.
Organic EBITDA in 2011 is 9,351 million euros (-376 million euros, or -3.9% compared to 2010), with an
organic EBITDA margin equal to 49.1%, an increase compared to 2010 (+0.5 percentage points).
In detail:
(millions of euros) 2011 2010 Change
Historical EBITDA 9,243 9,393 (150)
Exchange rate effect (4) 4
Changes in the scope of consolidation (8) 8
Non-organic (income) expenses 108 346 (238)
Non-organic revenues - (35) 35
Disputes and settlements (*) 63 91 (28)
Expenses for mobility under Law 223/91 12 254 (242)
Other (income) expenses 33 36 (3)
Comparable EBITDA 9,351 9,727 (376)
(*) The amount at December 31, 2011 includes expenses of 21 million euros for compensation due on the early termination of the Competence Center
contract with Telecom Italia Media.
Report on Operations The Business Units of the Telecom Italia Group – Domestic 49