Enrico parazzini and Antonio Campo Dall'Orto illustrate Telecom Italia Media's strategic objectives for the 2006-2008 period to the financial community

03/08/2006 - 05:00 PM

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TI Media: expected average annual revenue growth for the three-year period about 25%; positive EBITDA in 2008; total investment for €250 million

TI Media: new interactive content and services distributed on more innovative technological platforms to become one of the leading multimedia publishers on the Italian market

Enrico Parazzini, Chief Executive Officer of Telecom Italia Media, and Antonio Campo Dall’Orto, Telecom Italia Media Television General Manager, will present today the Group’s strategic objectives for the three-year period 2006–2008 to the financial community.

In 2005, Telecom Italia completed the process of focusing on the media industry, selling its Internet operations and the Buffetti Group (the latter sale was finalized in January 2006), and executing the buy-back of ordinary and savings shares and the merger by incorporation of La7 Televisioni S.p.A.

In tandem, during the year TI Media made major investments, sharply increasing the amount allocated compared to 2004, with the aim of both starting up the digital terrestrial television and strengthening the results already achieved in analog TV, becoming one of the most active companies on the Italian market.

Over the next three years, the Italian market will feature major development in new platforms (digital terrestrial, DvBH, IPTV, etc.), with average annual sales growth rates in the neighborhood of 60%-100%(*). TI Media is gearing to seize the opportunities offered by this rapid development,
consolidating its position as a multimedia and multiplatform broadcaster to become a benchmark in its industry. As a result, TI Media will be able to strengthen the distinctive positions it has already achieved through further investment aimed at increasing audience share, advertising sales, and other sources of revenues, while at the same time keeping the cost/revenues ratio under control.

To this end, TI Media plans on expanding the entire television and multimedia offer at La7 and MTV with new interactive content and applications for distribution on all the most innovative technological platforms, with the help of the skills developed at other Telecom Italia Group companies. This expansion will bring more opportunities for interaction with viewers, attracting market segments consistent with the target, while at the same time diversifying the sources of revenue both in terms of advertising sales and offers of premium contents. In detail, in the digital terrestrial sector, the Group aims at consolidating its position as the number two player in the pay-per-view segment.

Therefore, in the 2006-2008 period, the Telecom Italia Media Group projects:

average annual revenue growth of approximately 25%;

positive EBITDA in 2008 (positive in 2007 for free-to-air television);

investment for a total of €250 million;

overall corporate cost efficiencies are expected to exceed €10 million by 2008 compared to 2004.
 

Moreover, in view of the development of the multi-platform offer, by 2008 the percentage of consolidated revenues from new technological platforms is expected to increase to 35% of total business unit turnover (from 16% already in 2005).

Finally, revenues at APCom are expected to grow an annual average of about 30% in the 2006-2008 period, driven by constant innovation in the range of services, consolidation of the multimedia and multiplatform business model both in production and distribution, expansion of the institutional client portfolio, and the offer of new services. 

(*) source: Business Review, Pricewaterhouse, Morgan Stanley, Deutsche Bank, Cheuvreux, Merrill Lynch, Bear Stearn &Co., AGCOM.

 

Milan, March 8 2006