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euros), respectively. The mobile area also recorded a contraction in revenues (-6%, or -48 million
euros);
• an increase in revenues in the National Wholesale segment (+28 million euros, or +1.3%),
generated by the growth of the customer base of OLOs on services for Local Loop Unbundling,
Wholesale Line Rental and Bitstream.
EBITDA
EBITDA is 9,000 million euros, decreasing 89 million euros (-1%) compared to 2010. The organic change
in EBITDA is a negative 3.3% (-315 million euros). The EBITDA margin grew from 47.9% in 2010 to
49.9%; at the organic level, the EBITDA margin is 50.5% (49.5% in 2010).
Non-organic income and expenses excluded from the calculation of organic EBITDA are as follows:
(millions of euros) 2011 2010 Change
Non-organic revenues - (35) 35
Expenses for mobility agreements under Law 223/91 9 245 (236)
Disputes and settlements 63 91 (28)
Other (income) expenses 33 30 3
Total non-organic (income) expenses 105 331 (226)
At the EBITDA level, the negative effects described under the comments on revenues are partly offset by
the reduction in operating costs which are analyzed below.
Acquisition of goods and services
Acquisition of goods and services stands at 6,324 million euros, decreasing 327 million euros (-4.9%)
compared to 2010 (6,651 million euros). The change is attributable to a reduction in the portion of
revenues to be paid to other operators mainly as a result of the reduction in mobile termination prices.
The increase recorded by certain expense items (purchases of goods related to the sale of products and
energy) has largely been compensated by the benefits arising from efficiency measures applied to fixed
operating costs.
(millions of euros) 2011 2010 Change
Purchases of goods 1,088 895 193
Portion of revenues to paid to other operators and interconnection costs 1,730 2,055 (325)
Commercial and advertising costs 883 982 (99)
Consulting and professional services 163 155 8
Power, maintenance and outsourced services 982 942 40
Rent and leases 788 843 (55)
Other expenses 690 779 (89)
Total acquisition of goods and services 6,324 6,651 (327)
% of Revenues 35.0 35.0 -
Employee benefits expenses
Details are as follows:
(millions of euros) 2011 2010 Change
Ordinary employee expenses and costs – excluding actuarial (gains) losses 2,731 2,879 (148)
Actuarial (gains) losses relating to employee severance indemnities (102) (3) (99)
Expenses for mobility under Law 223/91 9 245 (236)
Total employee benefits expenses 2,638 3,121 (483)
Report on Operations Review of Operating and Financial Performance – Telecom Italia S.p.A. 80