Telecom Italia Media: 2005 accounts approved

04/10/2006 - 00:00 PM

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Consolidated revenues: equal to €180 million (16.4% organic growth)

Consolidated net income: equal to €800 million

TI Media net income: €781.7 million

Dividend payout totalling around €550 million approved


The Telecom Italia Media (Telecom Italia Group) Shareholders’ Meeting, chaired by Riccardo Perissich, met in ordinary session today to examine and to approve the 2005 accounts of Telecom Italia Media and the La7 company (merged into TI Media with effect from January 1, 2006). The accounts were presented by Group CEO Enrico Parazzini.

The 2005 financial year was boosted by transactions conducted under the Telecom Italia Group internet operations restructuring plan, announced to the market on April 4, 2005. Specifically, on June 1, Telecom Italia Media completed its disposal of Virgilio and Tin.it operations to Telecom Italia for a total price of €950 million, and booked a capital gain of €901 million.

Also in June, the company completed a buyback of ordinary and savings shares for an overall outlay of €147.7 million.

Going concerns Elefante TV and Delta TV were acquired during the second half of the year for an overall outlay of €128.5 million; a deal was also reached for the disposal of the Buffetti Group, which was completed in January 2006.

Consolidated revenues amounted to €180 million (€168 million in FY 2004), after posting 16.4% organic growth compared with the preceding year. Operating income was equal to -€130 million (-€93 million in 2004), predominantly as a result of digital terrestrial startup activities (including pay-per-view).

The 2005 financial year closed with consolidated net income of €800.9 million (-€226.3 million in 2004), of which €781.7 million for TI Media SpA. This result allows for the payout of dividends totalling around €550 million. The Shareholders’ Meeting approved the following payout: €0.1643 per ordinary share and €0.1679 per saving share.

Savings shareholder dividends include preferred dividends for the 2003 and 2004 financial years. The company will start paying out dividends on April 27, 2006, ex-coupon on April 24, 2006.

The Shareholders’ Meeting appointed Pier Francesco Saviotti to the Company Board of Directors to replace the outgoing Romano Marniga.

The Shareholders’ Meeting adjusted the consideration paid out to external auditors Reconta Ernst & Young for the 2006 and 2007 financial years to reflect changes in the corporate structure.