SeatPG: The Board of Directors Examined Six-month Results for 2002

07/24/2002 - 00:00 PM

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• SEAT GROUP: SIGNIFICANT INCREASE IN GROSS OPERATING PROFIT (+46% COMPARED TO THE FIRST HALF OF 2001) AND IN OPERATING PROFIT BEFORE AMORTIZATION OF GOODWILL (+113% COMPARED TO THE FIRST HALF OF 2001)

• INTERNET BUSINESS AREA: POSITIVE GROSS OPERATING PROFIT CONFIRMED

• LOWER FINANCIAL DEBT: A DECREASE OF EURO 138 MILLION IN SIX MONTHS

The Board of Directors of Seat Pagine Gialle, chaired by Enrico Bondi, met today to examine the Group’s preliminary and unaudited six-month results for the financial year underway.

• Consolidated revenues topped Euro 870 million, up 5.5% compared to the first half of 2001, equal to a 2.6% growth in comparable terms (with the same consolidation area).
•  The important operating efficiencies achieved in the first half of the year and further cost-reduction measures led to a gross operating profit of Euro 209 million, up approximately 46% compared to the January-June period of 2001* (the incidence on revenues increased from 17% to about 24%.
•  Operating profit before amortization of goodwill was about Euro 108 million (+113% compared to the first six months of 2001)*. The operating result was positive for over Euro 18 million, compared to the loss of Euro 42 million* posted in the first half of 2001.
• Net financial debt at June 30, 2002 dropped to Euro 784 million - equal to about half the shareholders´ equity - compared to Euro 922 million at December 2001. The financial debt decreased thanks to the operating cash flow achieved in the second quarter of 2002.


The final half-year report for 2002 of the Seat Pagine Gialle Group is subject to the approval of the Board Meeting to be held on September 4, 2002.


Performance of the Business Areas

The marked recessive trend of the advertising market did not prevent the Directories area from posting sales of approximately Euro 456 million, up 4.6% compared to the same period in 2001. This marks a significant improvement in profitability, with an increase in gross operating profit from 46% to 51%. 

The Internet area confirmed its growth trend again in the second quarter of 2002, with a positive gross result, despite advertising investments borne in connection with the advertising campaign to relaunch the Tin.it brand. This business area posted revenues of Euro 66 million, in line with the previous six months considering a comparable consolidation area. At the end of June, the number of active users in the last 45 days reached 1.98 million, 274,000 of whom are ADSL services subscribers.

Revenues in the Office Products & Services area for the first half of the year amounted to Euro 146 million, up 16% compared to the first half of 2001 (in comparable terms, this item increased by about 12%), while revenues reached Euro 41 million (+8%) in the Television area, Euro 79 million (-3.9%) in the Directory Assistance area, and Euro 80 million (+25% as a result of the expanded consolidation area) in the Business Information area.
 


* The statement of income for the first half of 2001 was reclassified to adapt it to the format used by the Telecom Italia Group, including among operating costs several one-time expenses that were previously entered below the operating results.  Due to the adoption of this new format, the consolidated gross operating profit for the first half of 2001 thus came to Euro 143.5 million (compared to Euro 151.4 million reported in the six-month report of the Seat Pagine Gialle Group for 2001), operating profit before the amortization of goodwill came to Euro 50.7 million (as opposed to Euro 64 million) and the operating results came to a negative Euro 41.8 million (against a loss of Euro 32.6 million).