Telecom Italia Media: Board Of Directors approves the Interim Report on operations as of 30 March 2015 which shows results in line with the forecasts

05/05/2015 - 05:34 PM

- + Text size
Print

REVENUES: 20.9 million euros; +5.4 million euros compared with q1 2014 (15.5 million euros)

EBITDA: 8.8 million euros; +3.1 million euros compared with q1 2014 (5.7 million euros)

EBIT: 3.2 million euros; +4.2 million euros compared with q1 2014 (-1.0 million euros)

NET RESULT:  -0.7 MILLION EUROS (-2.6 MILLION EUROS IN Q1 2014)
NET FINANCIAL DEBT 266.9 million euros (269.4 million euros at the end of 2014)

The Interim Report on Operations of the Telecom Italia Media Group as of 31 March 2015 has been drawn up in accordance with article 154–ter (Financial reports) of Legislative Decree No. 58/1998 (Consolidated Law on Financial Intermediation [Testo Unico della Finanza]- TUF), as subsequently amended and supplemented, and CONSOB Communication No. DEM/8041082 of 30 April 2008 (Quarterly reporting by listed issuers with Italy as their Member State of origin).

The present press release on the Interim Report on Operations is not audited and has been prepared in accordance with the International Accounting Standards issued by the International Accounting Standards Board and endorsed by the European Union ("IFRS").

In the preparation of said press release on the report the same accounting policies and consolidation principles used in the Consolidated Financial Statements of Telecom Italia Media Group at 31 December 2014 were adopted, to which reference is made, except for the new Principles/Interpretations adopted by the Group starting from 1 January 2015 and already explained in the 2014 financial statements. These new Principles/Interpretations did not have an impact on the Interim Report on Operations at 31 March 2015.

In addition to the conventional financial performance measures contemplated under IFRS, the Telecom Italia Media Group uses certain alternative performance measures in order to give a clearer picture of the trend of operations and the company's financial position. Specifically, the alternative performance measures refer to: EBITDA; EBIT; net financial book debt. For further details on these measures see the chapter “Alternative performance measures”. Note that the chapter "Business Outlook", contains forward-looking statements about the Group’s intentions, beliefs and current expectations with regard to its financial results and other aspects of the Group's operations and strategies. Readers of the present press release on the Interim Report on Operations should not place undue reliance on such forward-looking statements, as final results may differ significantly from those contained in the above-mentioned forecasts owing to a number of factors, the majority of which are beyond the Group’s control.

Introduction

Following the integration of the activities of the Digital Terrestrial Network Operator, completed on 30 June 2014, the economic values shown in this press release include, for the first quarter of 2015, the former Rete A activities, not included in the first quarter of 2014.

                                                ***

The Telecom Italia Media Board of Directors, chaired by Severino Salvemini, examined and approved the Group’s Interim Report on Operations at 31 March 2015.

Consolidated Group revenues reached 20.9 million euros in Q1 2015, up by 5.4 million euros (+34.8%) compared to Q1 2014 (15.5 million euros). This performance, positively affected by the integration of the activities of former Rete A S.p.A. (acquired on 30 June 2014 and merged with Persidera S.p.A. in December 2014) not present in the first quarter of 2014, can be fully attributed to the Network Operator. Including the activities of former Rete A in the first quarter of 2014 the organic change in the revenues of the Network Operator is essentially in line with a reduction of 0.3 million euros.

The EBITDA of the first quarter of 2015 amounted to 8.8 million euros up by 3.1 million euros compared to the 5.7 million euros of the first quarter of 2014. This performance was positively influenced by both the aforementioned increase in revenues and the increase in other income for 1.5 million euros, only partially offset by an increase in the other operating costs of 3.5 million euros of the Network Operator mainly attributable to the costs from the activities of the former Rete A not present in the first quarter of 2014. Including these costs the organic change to the EBITDA of the Network Operator was positive for 1.0 million euros. The EBITDA of Telecom Italia Media S.p.A. was down by 0.5 million euros mainly following the greater acquisitions of materials and services.

EBIT amounted to 3.2 million euros compared to -1.0 million euros of Q1 2014 and was affected by lower depreciation and amortisation for 1.0 million euros fully attributable to the Network Operator. This change includes both the extension to the useful life of the frequencies (made in August 2014, to apply for the entire year 2014) and the redefinition of the useful life of the transmission equipment of Persidera S.p.A. prior to the merger (carried out in December 2014, to apply for the entire year 2014) which led to a reduction of the depreciation and amortization respectively of around 0.4 and around 1.8 million euros compared to the first quarter of 2014, only partially offset by the increase in amortization and depreciation from the assets of the former Rete A not present in the first quarter of 2014.

The Net Result amounted to -0.7 million euros compared to -2.6 million euros in Q1 2014.

Net financial debt as of 31 March 2015 was equal to 266.9 million euros compared to 269.4 million euros at the end of 2014. This trend can mainly be attributed to the requirement for the industrial investments of the period for 1.4 million euros, the result of the positive operations of the period (EBITDA and  Working Capital) for -8.7 million euros, the payment of dividends on the 2014 result, by Persidera S.p.A. to the Gruppo Editoriale l’Espresso, for 2.9 million euros and the other net disbursements for 1.9 million euros mainly relative to the net financial charges of the period.

Network Operator – Persidera S.p.A. (former Telecom Italia Media Broadcasting – TIMB)

The revenues and income of the Network Operator amount to 20,946 thousand euros and are up by 5,478 thousand euros compared to the first quarter of 2014 which, it should ne remembered, does not include the results of Rete A S.p.A. (acquired on 30 June 2014 and merged into Persidera S.p.A. in December 2014), integrated from 1 July 2014. This result can be attributed to the revenues ascribable to the former Rete A component which in the same reference period of 2014 were worth 5,735 thousand euros. Including this value the organic change of the revenues is essentially in line with a reduction of 257 thousand euros.

The EBITDA was positive for 11,106 thousand euros and increased by 3,593 thousand euros compared to the first quarter of 2014 (+48.0%). This performance was positively influenced by the increase in revenues and other income, only partially offset by an increase of the other operating costs of 3,494 thousand euros, mainly attributable to the costs deriving from the activities of the former Rete A not present in the first quarter of 2014 and that, in the first quarter of 2014, amounted to 3,271 thousand euros. Including these costs the organic change to the EBITDA was positive for 1,044 thousand euros.

The EBIT amounted to 5,456 thousand euros, an improvement of 4,637 thousand euros compared to the first quarter of 2014 due to both the change in the EBITDA and lower depreciation and amortization for 1,044 thousand euros. Including the activities of the former Rete A in the first quarter of 2014, the organic change to the EBIT was positive for 3,224 thousand euros.

The investments of the first quarter of 2015 amounted to 1,422 thousand euros and mainly refer to the maintenance and development of the current broadcasting platform.

EVENTS SUBSEQUENT TO 31 March 2015

There are no events to report.

BUSINESS OUTLOOK

The Telecom Italia Media Group, following the sale of its television business units La7 La7d and MTV Italia, has focused its development strategy on the implementation of initiatives aimed at restoring the Group’s efficiency and profitability. In light of the current economic and regulatory environment in which Telecom Italia Media operates, and considering the effects of the integration of Persidera S.p.A. and Rete A S.p.A., and of the announced merger of Telecom Italia Media into Telecom Italia S.p.A., in 2015 the plan for Persidera S.p.A. is to maintain the current level of bandwidth rental also through new customers, expand the offering of additional services and, implementing tight control over costs, thereby generate positive cash flow from the operating activities.

As regards the activities of the Parent Company Telecom Italia Media S.p.A. reference is made to that already stated about the announced merger by incorporation of Telecom Italia Media S.p.A. into Telecom Italia S.p.A..

                                                ***

Pursuant to sub-section 2, clause 154-bis of the Consolidated Law on Financial Intermediation, the Manager responsible for preparing the corporate accounting documents, Luigino Giannini, has declared that the accounting disclosures contained in this press release correspond to the data records, accounting books and accounts entries.

Milan, 05 May 2015