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The trend of the key operating and financial indicators for the year and the fourth quarter of 2011 can
be summarized as follows:
Organic Revenues
(millions of euros)
+785 (+2.7%)
29,172 29,957
IVQ
IIIQ 7,246 +3.7% 7,516 +270
IIQ 7,318 +2.1% 7,470 +152
IQ
7,088
7,073
Reported Revenues
+2,386 (+8.7%)
29,957
27,571
7,520 +5.0% 7,898
+378 +2.9%
7,672
-0.2%
2010 2011
-15
6,676
6,810
+12.6%
+9.7%
7,898
7,516
7,470
6,413 +10.3% 7,073
2010 2011
Consolidated Reported Revenues: in
2011 are 29,957 million euros with a
positive change of 8.7% (+2,386 million
euros). The increase is due to the Latin
America operations which benefit from the
entry of the Argentina Business Unit in the
scope of consolidation for the full year,
and the positive performance by the Brazil
Business Unit (7,343 million euros,
+1,144 million euros compared to 2010,
or +18.5%). The change in consolidated
Organic Revenues (1) in 2011 comes to
+2.7%, displaying a trend of constant
improvement during the year; consolidated Organic Revenues for the fourth quarter of 2011 in fact
recorded a 5.0% increase compared to the fourth quarter of 2010.
More to the point:
• the organic reduction in Domestic Business Unit Revenues in 2011 is 4.8% (-2.1% in the fourth
quarter of 2011); as for revenues by customer segment, 2011 records a reduction of 5.0% in the
Consumer segment, a contraction of 6.9% in the Business segment and 5.4% in the Top Clients
segment.
• Revenues in Brazil show organic growth of 18.2% compared to 2010 (+1,129 million euros); in the
fourth quarter of 2011, organic revenue growth is 20.0% (+325 million euros).
• Revenues in Argentina increase 26.5% in organic terms compared to 2010 (+674 million euros); in
particular, Revenues of the Mobile business are up 32.3% while the Fixed area expands by 15.0%.
For the fourth quarter of 2011, organic revenue growth is 24.1% (+174 million euros).
(millions of euros)
IIIQ
IIQ
IQ
Organic EBITDA
42.3% 41.2%
EBITDA
Margin +4 (+0.0%)
12,335 12,339
IVQ
3,006
3,186 +0.8% 3,213
3,066
+3.3%
-0.4%
3,105
3,055
3,077 -3.6% 2,966
2010 2011
+99
+27
-11
-111
Reported EBITDA
41.4% 40.9%
+834 (+7.3%)
12,246
11,412
2,937
2,742
2,907
+4.6%
+16.6%
+4.9%
3,071
3,198
3,048
2,826 +3.6% 2,929
2010 2011
Consolidated Reported EBITDA: grows 834
million euros (from 11,412 million euros in
2010 to 12,246 million euros in 2011); a
positive contribution to this result is made
by the entry of the Argentina Business Unit
in the scope of consolidation for the entire
year; for the fourth quarter of 2011, EBITDA
increases 4.6% (+134 million euros). The
consolidated Reported EBITDA margin falls
0.5 percentage points to 40.9% in 2011
(41.4% in 2010). The consolidated Organic
EBITDA Margin is down 1.1 percentage
points to 41.2% in 2011 (42.3% in 2010).
Such performance is linked to the higher contribution to revenues by South America, where margins are
lower than those of the Domestic Business, as well as the increase in sales of mobile handsets, aimed
at a greater penetration of data services. In terms of the amount, organic EBITDA is 12,339 million euros
(12,335 million euros in the prior year); in the fourth quarter of 2011, organic EBITDA is
3,105 million euros, up 3.3% compared to 3,006 million euros in the fourth quarter of 2010.
+226
+840
+660
+660
+134
+456
+141
+103
(1) The organic change in Revenues, EBITDA and EBIT is calculated by excluding the effects of the change in the scope of consolidation, exchange
differences and non-organic components constituted by non-recurring items and other non-organic income/expenses.
Annual Report 2011 Key Operating and Financial Data - Telecom Italia Group 9