Annual Report 2010 - Enel.com

Services and Other Activities
The primary purpose of the Services and Other Activities
area is to provide competitive services to the companies
of the Group, such as real estate and facility management
services, IT services, personnel training and administration,
general administrative services, and factoring and
insurance services.
Performance
Revenues for the Services and Other Activities area came
to €1,133 million in 2010, up €41 million compared with
2009. The increase essentially reflects an increase of €39
million in revenues for IT services, mainly in respect of telephony
service for Group companies, increased sales of
hardware and software, mainly to the Infrastructure and
Networks Division, as well as higher revenues for construction
contracts relating to IT projects and building renovation
works. These increases were partially offset by a decrease
in capital gains on the sale of land and buildings
and the reduction in revenues from real estate services.
The gross operating margin for 2010 amounted to €136
million, up €12 million or 9.7% compared with the previous
year. The rise is essentially attributable to the decrease
in costs for provisions for early retirement incentives, as
well as the positive effects of the revised estimate of liabilities
for employee electricity discounts, which resulted
in the reversal to income of part of the liability recognized
in previous years. These factors were partially offset by
the decline in capital gains on the sale of real estate mentioned
above.
Operating income amounted to €26 million in 2010, up
€3 million compared with 2009 after an increase of €9 million
in depreciation, amortization and impairment losses,
due essentially to the net effect of the entry into service of
intangible assets and new investments in software.
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