Board of Directors examines and approves Group Interim Financial Statements at 30 September 2010

10/29/2010 - 01:33 PM

- + Text size
Print

Telecom Italia Media Group:

First nine months results confirm the exceeding of the break-even specified in the Business Plan for the full-year 2010, with positive EBITDA growing by €14.7 million on the same period of 2009

Revenues: € 177.4 million; +11.6% compared with the first nine months of 2009 (€ 159.0 million)

EBITDA: € 10.2 million; + € 14.7 million compared with the first nine months of 2009 (- € 4.5 million)

EBIT: - € 34.7 million; + € 14.3 million compared with the first nine months of 2009 (- € 49.0 million)

Net Result: - € 33.2 million; +€22.0 million compared with the first nine months of 2009 (- € 55.2 million)

Net Financial Position: € 99.2 million; - € 245.9 million compared with 31 December 2009 (€ 345.1 million) mainly due to the positive outcome of the capital increase for € 239.5 million

Excellent results of La7 in terms of average audience share due mostly to the increase following the launch of the new news bulletin with Mentana: 3.7% in September compared with 3.0% in September 2009
 


The Telecom Italia Media Board of Directors, chaired by Berardino Libonati, today examined and approved the Group's Interim Financial Statements at 30 September 2010.

In the first nine months of 2010 the Group EBITDA stands at €10.2 million, fully exceeding the break-even target specified in the FY 2010 Business Plan.

The positive results for the first nine months are strongly linked to the increase in revenues of the Network Operator (+ €22.6 million) and to the upturn in television advertising benefitting both La7 and MTV.

Consolidated group revenues for the first nine months of 2010 amounted to €177.4 million, up €18.4 million (+11.6%) from the same period of 2009.

EBITDA amounted to €10.2 million, up €14.7 million from the same period of the previous year.

EBIT amounted to -€34.7 million, registering a €14.3 million improvement compared with the same period of 2009. The change is almost entirely due to growth in EBITDA.

The net result rose by €22.0 million to -€33.2 million (-€55.2 million in the first nine months of 2009).

Net financial position stood at €99.2 million at 30 September 2010, down by €245.9 million from 31 December 2009 (€345.1 million). The change is primarily due to the positive outcome of the capital increase (€239.5 million) and to tax rebate for the fiscal consolidation at Telecom Italia Group level (€33.8 million), partially offset by capital expenditure requirements for the period (€36.5 million). Compared to 30 June 2010, the net financial debt grew only by € 5.9 million.


1. Telecom Italia Media S.p.A. (La7, La7d, Digital Content)

Telecom Italia Media S.p.A.’s revenues for the first nine months of 2010 amounted to €76.3 million, down €5.1 million compared with the same period of 2009.

Net advertising revenues rose by 2.2% to €65.1 million (€63.7 million in the same period of 2009). Advertising revenues for the channel La7 in the first nine months of 2010 remain substantially unchanged on those of the same period of the previous year, by virtue of the agreement with Cairo Communication based on a guaranteed minimum, while the new channel La7d, free-to-air digital terrestrial channel launched in March 2010, generated advertising revenues of €1.8 million.

Real gross advertising revenues exceeded by 2.2% the value of the minimum guaranteed.

While advertising revenues for the two channels La7 and La7d improved, Telecom Italia's Digital Content revenues were lower at €9.1 million (€11.7 million in the first nine months of 2009) as a result of the new contract which came into effect in April, as were revenues from Media Services following the end of the service business to Dahlia TV.This press release refers to certain performance indicators (EBITDA, Net Financial Debt) that do not conform to International Financial Reporting Standards (IFRS). These terms are defined in the Appendix.

EBITDA came to -€32.5 million, down €7.9 million compared with the first nine months of 2009 (-€24.6 million). The decrease is due substantially to the cost increase of La7’s programming, partially offset by a cost decrease of other activities.  

EBIT amounted to -€53.0 million, down €8.0 million compared with the first nine months of 2009 (-€45.0 million).

La7 closed the first nine months of 2010 with an average daily share of 2.97%, down from the 3.04% of the same period of 2009, but with strong recovery in audience figures (2.82% at the end of H1 2010), thanks to steady increases over recent months.

Excellent results from La7 in terms of audience share following the launch of the new news bulletin with Mentana which turned out a distinctive product and immediately proved very popular. In September the network's average share rose to 3.7% from 3.0% in September 2009 and the first figures of October confirm the positive trend.


2. MTV Group

MTV Group’s revenues in the first nine months of 2010 came to €66.4 million, down €1.4 million compared with the first nine months of 2009 (€67.8 million). Revenues benefited from the growth in advertising revenues of the channel MTV, the new digital MTV+ channel and the satellite channels, which in part compensated the fall in revenues of Playmaker, MTV Mobile and the web channels.

EBITDA amounted to €9.0 million, up €2.2 million compared with the first nine months of 2009 (€6.8 million). The improvement was substantially due to the positive effect of corporate reorganization which led to a reduction in Playmaker activities and cost cuts at MTV Mobile, as well as closer control of operational costs.

EBIT came to €3.5 million, an increase of €2.5 million on the first nine months of 2009 (€1.0 million).

Gross advertising revenues for MTV Group rose from €44.4 million in the first nine months of 2009 to €48.2 million at 30 September 2010, an increase of 8.6%, higher than the growth rate for the TV market as a whole (+7.7% on 2009 for January-August; source Nielsen).


3. Network Operator (TIMB)

Revenues generated by the Network Operator in the first nine months of 2010 amounted to €58.0 million, up €22.6 million from the same period of 2009 (+63.8%). The improvement was mainly due to higher revenues from digital bandwidth renting and services to third parties which represent around 71% of total digital revenues for Telecom Italia Media Broadcasting. At 30 September 2010 the transmission capacity of the Multiplexes available for the hosting of further TV channels is totally exhausted.

EBITDA amounted to €32.0 million, up €18.9 million on the first nine months of 2009.

EBIT was €13.2 million, up €18.4 million from the first nine months of 2009.

Capex during the first nine months of 2010, amounting to €6.2 million, was down €8.8 million compared with the same period of last year. This is because for 2010 the planned switch-off of the analogue network and conversion of the broadcasting systems to digital terrestrial is concentrated in the last quarter of the year and partly postponed to early 2011 because of the delay of the process.  

As of 30 September 2010, the three Telecom Italia Media Broadcasting digital multiplexes (excluding the fourth, which at the time of writing is operational in Sardinia only), respectively covered 79.3%, 88.9% and 29.5% of the Italian population. In particular, the Multiplex TIMB3 has a coverage of 94.0%, based solely on the regions/areas in which the switch-off process is completed.


§§§


MANAGEMENT OUTLOOK

Based on current assumptions and bearing in mind the present economic and regulatory climate in which the company must operate, Telecom Italia Media expects the following in the fourth quarter of 2010:

  • Higher television advertising revenues for Telecom Italia Media specifically thanks to La7's increased audience share plus revenues from the new La7d channel, absent in 2009;
  • Further reinforcement of La7's autumn programming, with consequent cost increase;
  • Increased advertising revenues for MTV compared with the previous year, also thanks to the launch of the new MTV+ channel;
  • Increased revenues and profits for the Digital Terrestrial Network Operator thanks to bandwidth hosting agreements.

Based on these assumptions, Telecom Italia Media expects to consolidate over the whole of the financial year the positive EBITDA already achieved in the first nine months.


AMENDMENTS TO THE BYLAWS

The Board of Directors has approved the following changes to the bylaws in line with Legislative Decrees 27/2010 (shareholders' rights) and 39/2010 (auditing of accounts):

  • Elimination of statutory provisions incompatible with the new regulation concerning: the timing and terms to publish the lists of candidates for appointment to the Board of Directors and the Board of Auditors; the timing and terms for shareholders to request integration to the meeting agenda; and the terms for deciding who can speak at the Shareholders’ Meeting;
  • Introduction of e-mail notification of Shareholders’ Meetings, referring the recipient to the convening notice for further details;
  • Changes in terminology in line with the new terms used in the legislation.

The updated text of the bylaws will be made available on the company web site www.telecomitaliamedia.it as soon as the resolution has been filed with the Company Register.

§§§

 
Finally, the calendar of meetings to approve the Telecom Italia Media S.p.A. financial statements for FY 2011 is detailed below:

  • 23 February: Board of Directors' meeting to approve the annual financial statements and consolidated statements at 31 December 2010;
  • 8 April: Shareholders’ Meeting for the approval of the financial statements at 31 December 2010;
  • 4 May: Board of Directors' meeting to approve the interim financial statements at 31 March 2011;
  • 28 July: Board of Directors' meeting to approve the 2011 half-yearly financial statements;
  • 28 October: Board of Directors' meeting to approve the interim financial statements at 30 September 2011.

 Any changes to the above dates will be promptly communicated.

§§§


The Manager designate for the preparation of accounting corporate documents, Paolo Serra, hereby declares, pursuant to paragraph 2, Art.154-bis of the Italian Consolidated Financial Law, that the accounting information contained herein corresponds to the company’s documentation, accounting books and records.

§§§

The interim Group results at 30 September 2010 will be illustrated to the financial community during a conference call scheduled for 3.30 pm (Italian time). Journalists may listen in to the presentation by phone on 800 408 088 (callers from Italy) and +39 06 33 485 042 (International callers). It will also be possible to listen to the presentation again over the following 48 hours by calling +39 06 334 843 (access code: 313110# for Italian; 202009# for English).


Appendix (file .pdf, 102 KB)
 

 

Milan, 29 October 2010