to download Telecom Italia Annual Report 2011 - Company Reporting

Revenues
Revenues amount to 238 million euros in 2011, decreasing 20 million euros compared to
258 million euros in 2010. In greater detail:
• revenues of TI Media – La7 in 2011, before infragroup eliminations, stand at 140 million euros,
increasing 24 million euros (+21.0%) compared to 2010, thanks to the decisive increase in gross
advertising revenues which in 2011 total 186 million euros +32.1% over the same period of 2010.
Advertising revenues particularly benefitted from the excellent performance of channel La7’s daily
average audience share which reached 3.8% in 2011 and also from channel La7d’s net revenues
for 2011 which totaled 6 million euros.
• MTV Group revenues come to 74 million euros, before intragroup eliminations, decreasing
24 million euros compared to 2010 (98 million euros). This reduction is due for 9 million euros to
lower net advertising revenues and the remaining amount to the fall of other activities, particularly,
lower revenues from external productions of Playmaker (-7 million euros), lower revenues by
MTV Mobile (-2 million euros), following the recent contract revision at the end of 2010, and lower
revenues by the satellite-music platform channels as a result of the renegotiation, to lower values,
of the contract with Sky (-2 million euros).
• revenues from network operator activities, before intragroup eliminations, amount to
55 million euros, compared to 76 million euros in 2010, decreasing 21 million euros. This reduction
is largely due to lower revenues from the customer Dahlia (-26 million euros) which ceased
operations at the beginning of 2011. The reduction in the revenues of analog activities with the
Group, in relation to the switch-off process, was offset by higher revenues from the lease of digital
bandwidth on its Multiplexes.
EBITDA
EBITDA is a positive 28 million euros in 2011 and increased 15 million euros compared to 2010, thanks
to income of 21 million euros as a result of compensation for the early termination of the Competence
Center contract. Excluding such income, therefore in organic terms, EBITDA is 7 million euros,
decreasing 6 million euros compared to the same period of 2010. In particular:
• EBITDA of TI Media – La7, comes to -2 million euros in 2011 and, as described above, includes
compensation income of 21 million euros; this is an improvement of 34 million euros compared to
2010 (-36 million euros); in organic terms, EBITDA amounts to -23 million euros. Such result is
affected by the higher contribution of revenues as previously described, which more than offset the
higher operating costs linked largely to the programming of channels La7 and La7d.
• EBITDA of the MTV group is 7 million euros, decreasing 5 million euros compared to 2010
(12 million euros). The reduction in EBITDA is due to the contraction in revenues due both to lower
advertising and also to Mobile, Satellite and Playmaker activities, which were only partly
compensated by the reduction in operating costs.
• EBITDA relating to network operator activities is 23 million euros and is 12 million euros lower than
2010. This result was influenced by the loss of Dahlia TV sales and compensated by a reduction in
operating costs due to greater efficiency of network management.
EBIT
EBIT is a negative 87 million euros in 2011, showing an improvement of 5 million euros compared to
2010. In organic terms, EBIT recorded a reduction of 5 million euros (-10.9%) compared to 2010.
Report on Operations The Business Units of the Telecom Italia Group – Media 71