The Board of Directors approves the results for the third quarter 2002

11/25/2002 - 00:00 PM

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Net consolidated profit amounts to Euro 15 million, compared with a loss of Euro 33 million in Q3 2001
Positive gross operating profit registered by the Internet area for the third consecutive quarter


 

SEAT PG GROUP
• REVENUES AMOUNTED TO EURO 1,379 MILLION
    (+2.6% COMPARED TO 9/30/2001)
• GROSS OPERATING PROFIT: EURO 400.6 MILLION (+33.2% COMPARED TO 9/30/2001)
• OPERATING INCOME: EURO 127 MILLION
 (EURO 10.1 MILLION AT 9/30/2001)
• NET PROFIT AMOUNTED TO EURO +1 MILLION, COMPARED TO A LOSS OF EURO 109.8 MILLION AT 9/30/2001
• FINANCIAL DEBT DECREASED TO EURO 232 MILLION COMPARED TO 12/31/2001 AND REACHED EURO 690 MILLION


 

SEAT PG S.p.A
• REVENUES: EURO 778.2 MILLION (+2.9% COMPARED TO 9/30/2001)
• GROSS OPERATING PROFIT: EURO 386.5 MILLION (+8.4% COMPARED TO 9/30/2001)
• OPERATING INCOME: EURO 231.9 MILLION
 (+18.1% COMPARED TO 9/30/2001)
• NET PROFIT AMOUNTED TO EURO 21.5 MILLION, COMPARED TO A LOSS OF EURO 88.8 MILLION AT 9/30/2001


 

The Board of Directors of Seat Pagine Gialle (Telecom Italia Group) met today in Rome and analyzed and approved the Group results for the first nine months of 2002. Consolidated net profit for the period amounted to Euro 1 million compared to a loss of Euro 109.8 million in the same period of 2001. Consolidated results showed a profit for the second consecutive quarter and, in progressive terms, it returned in the black for the first time since 2000.
Despite the limited increase in revenues due to the ongoing crisis of the advertising market, Seat PG Group´s positive results for the first nine months of 2002 stem from the significant work carried out to recover efficiency and reduce operating costs. The ratio of the gross operating profit to revenues reached 29.%, with a significant increase compared to 22.4% in 2001. The management action was aimed at improving and streamlining the Group´s structure and businesses and developing synergies within different business areas.
In particular, the profitability of the Internet area continued to improve also owing to the diversification of revenue sources and synergies with the directory area.
The success of the launch of PG Net, the new product offering listing on the Virgilio search engine for a fee was significant.  PG Net is targeted to SMEs and has been marketed by the Pagine Gialle sales network since July. To date, it has already reached 20,000 customers.
For the entire financial year 2002, Seat PG expects to confirm the significant business improvements it has achieved also thanks to the launch of the new Pagine Gialle and Pagine Bianche and the new Internet access offers. The increase in gross operating profit is confermed at about 30% compared to 2001.
In the past few months work to streamline the Group structure has continued. The number of operating companies within the Group has further decreased from 200 at the end of 2001 to 138 at September 30, 2002.


 

Economic and financial highlights of the Seat PG Group
Consolidated revenues amounted to Euro 1,379 million in the first nine months of 2002, with an increase of 2.6% compared to the same period of 2001.
Gross operating profit for the period grew significantly reaching Euro 400.6 million compared to Euro 300.8 million in the first nine months of 2001, thus registering a 33.2% increase.
Operating income before non-operating depreciation and amortization amounted to Euro 260 million in the first nine months of 2002, up 74% compared to Euro 149.4 million in the first nine months of 2001.
Consolidated net profit for the first nine months of the year showed a positive result amounting to Euro 1 million, compared to the loss of Euro 109.8 million in the same period of 2001.
The notable increase in the gross operating profit also influenced the operating income that reached Euro 126.7 million in the nine-month period, compared to Euro 10.1 million in the same period of 2001.
Net indebtedness was lower by Euro 232 million compared to December 31, 2001, thus decreasing to Euro 690 million.


 

Q3 2002 Results
Q3 2002 showed a positive consolidated net result of Euro 15 million compared to the loss of Euro 33 million registered for the same period of 2001.
Revenues for the quarter reached Euro 508.6 million with a reduction of 2%, mainly due to the exclusion from the consolidation area of the Datahouse Group and some companies operating in the Internet business, as well as to the decision to postpone the printing of some of Thomson´s telephone directories to the fourth quarter of 2002.
Gross operating profit reached Euro 191.4 million, compared to Euro 157.4 million in Q3 2001, thus increasing by 21.7% and showing a ratio to revenues of 37.6% against an incidence of 30.3% in 2001.
Operating income amounted Euro 107.6 million with an increase of 107.4% compared to Q3 2001 (Euro 51.9 million), with a ratio to revenues of 21.2%, compared to 10% in  2001.


 

SEAT PG S.p.A
Revenues of the Parent Company Seat PG S.p.A. amounted to Euro 778.2 for the first nine months, up 2.9% and operating income amounted to Euro 231.9 million, up 18.1% compared to Euro 196.5 million in the first nine months of 2001.
Net profit amounted to Euro 21.5 million at September 30, 2002, compared to a loss of Euro 88.8 million in the first nine months of period of 2001.


 

Events subsequent to September 30, 2002
On October 29, 2002, the first phase of the “Tiglio” project was completed. This operation involves the Olivetti-Telecom Italia Group companies and is aimed at valorizing real-estate assets of the companies of the Group, including the property of the Seat Pagine Gialle Group.
In particular, as of that date, the sales deeds for the real-estate assets of Seat Pagine Gialle S.p.A. and Gruppo Buffetti S.p.A. went into effect. These assets were transferred for a total amount of Euro 53 million, 10.6 million of which already collected on September 30, 2002. The impact on the net financial position was Euro 42.5 million, partially used to underwrite a seven-year loan of Euro 2.6 million to Tiglio S.r.l. and a capital increase of Euro 10.6 million in Tiglio S.r.l.. 


 

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On Thursday, November 7 at 11:00 am (Italian time), a conference call will be held to present the third-quarter results of the Group and of the Parent Company to the financial community.
Journalists can attend the conference call by calling the number:


 

06 33168   (from Italy)       
+39 06 33168   (from abroad)
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