Telecom Italia: Board of Directors examines and approves the Interim Report on Operations as of 30 September 2014

11/07/2014 - 07:40 AM

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  • Revenues: 15,972 million euros, -6.0% in organic terms compared with the first nine months of 2013
  • EBITDA: 6,588 million euros, -6.4% in organic terms compared with the first nine months of 2013
  • EBIT: 3,393 million euros, +1,910 million euros compared to the first nine months of 2013 reflecting an impairment loss on goodwill amounting to 2,187 million euros
  • Parent Company Net Profit: 985 million euros compared with -902 million euros in the first nine months of 2013 which reflected the impairment loss on goodwill
  • Adjusted Net Financial Debt: 26,572 million euros, a reduction of almost 0.8 billion euros compared with 30 June 2014
  • Liquidity Margin as of  30 September 2014: 12.3 billion euros, allows maturities to be covered for a period exceeding the next 24 months

                                                            ***

  • Recchi: we're keeping our promises on investments in ultra fast broadband infrastructures 100 cities already covered by optical fibre and over 2,500 municipalities by LTE
  • Patuano: there are concrete signs of recovery in the domestic market, we have overcome the 'Price war'
                                                                ***

The results of the first nine months of 2014 will be illustrated to the financial community during a conference call scheduled for today at 12.00 p.m. (Italian time). Journalists may listen to the conference call, without asking questions, by calling: +39 06 33168.

Those unable to connect live may follow the presentation until Friday 14 November by calling: +39 06 334843 (access code 705233#).

The presentation Slides, with an opportunity to follow the event in audio streaming, will be available at: www.telecomitalia.com/9M2014/eng

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The Interim Report on Operations of the Telecom Italia Group as of 30 September 2014 has been drawn up in accordance with article 154–ter (Financial Reports) of Legislative Decree No. 58/1998 (Consolidated Finance Law [Testo Unico della Finanza]- TUF), as subsequently amended and supplemented. This document also includes the Abbreviated Consolidated Financial Statements as of 30 September 2014 prepared in accordance with IFRS accounting principles issued by IASB and endorsed by the EU and, in particular, with IAS 34 Interim Financial Reporting; these Financial Statements are not audited. The accounting policies and consolidation principles adopted in preparing the Abbreviated Consolidated Financial Statements as of 30 September 2014 are consistent with those adopted in the Telecom Italia Group Consolidated Financial Statements as of 31 December 2013, to which reference can be made, except for the application of new Standards/Interpretations adopted by the Group from 1 January 2014. Moreover, as illustrated in the notes to the Abbreviated Consolidated Financial Statements as of 30 September 2014, the new Standards/Interpretations have not had any effect on the Group's consolidated Financial Statements.

In addition to the conventional financial performance indicators contemplated under IFRS, the Telecom Italia Group uses certain alternative performance indicators in order to give a clearer picture of the trend of operations and the company's financial position. Specifically, the alternative performance indicators refer to: EBITDA; EBIT; organic change in revenues, EBITDA and EBIT; net financial debt carrying amount and adjusted net financial debt. It should be noted that, as of 2014, Telecom Italia has revised the method for determining the Organic Change in Revenues, EBITDA and EBIT, no longer considering non-organic proceeds/expenses, including non-recurrent ones, in this calculation. The organic changes therefore only include the effects of changes in the consolidation area and foreign exchange rate differences. The data for comparative periods have therefore been restated accordingly. Further details regarding these indicators are provided in the annex.

Note that the section "Business Outlook for the 2014 fiscal year", 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 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.

                                                            ***

The Telecom Italia Board of Directors, chaired by Giuseppe Recchi, met yesterday to examine and approve the Group’s Interim Report on Operations as of 30 September 2014.

We are investing heavily both in Italy and in Brazil to develop fixed and mobile ultra fast broadband – stressed Chairman Giuseppe Recchi - and we are doing this in a way that ensures financial compatibility. We are the biggest investor in Italy, at around 3 billion a year, and are currently implementing a plan to provide ultra fast broadband coverage which has brought optical fibre to 100 cities and LTE mobile telephony to 2500 municipalities. Telecom Italia is continuing on the path of technological innovation and new services, focusing on maintaining technological leadership and to keep the promises made for the development of infrastructure in Italy”.

For CEO Marco Patuano, "The signs of change coming from the Domestic market are now a reality: we have overcome the 'price war', contrasting the arguments of those who predicted that competition in the sector would be based solely on constant price cuts, which would have brought nothing but a decline, with our policy based on quality of service. Our investments are bringing concrete results: over 150,000 customers have subscribed to the Tuttofibra service to date and we're proceeding at an average rate of 1,500 new contracts per day. In mobile telephony as well, 4G is now a mature technology that is coming into daily use and distinguishes our offer from that of our competitors. The company's relaunch started in the Italian market.

Main variations to the Telecom Italia Group consolidation area

The following changes occurred in the first nine months of 2014:

  • Rete A (Business Unit Media): on 30 June 2014 Persidera S.p.A. (former Telecom Italia Media Broadcasting) acquired 100% of the company, and as a consequence, Rete A became part of the consolidation area of the Group and is fully consolidated from 30 June 2014;
  • Trentino NGN S.r.l.(Domestic Business Unit): on 28 February 2014, the Telecom Italia Group acquired a controlling stake in the company, therefore the company entered the Group's consolidation area.

The following changes to the consolidation area occurred during 2013:

  • Sofora  - Telecom Argentina group: on 13 November 2013 the Telecom Italia Group accepted the offer to purchase its entire controlling shareholding of the Sofora  - Telecom Argentina Group. As a result the shareholding has been classified under Discontinued operations. Pursuant to IFRS 5 (Non-current assets held for sale and Discontinued operations), the economic results of the Sofora - Telecom Argentina group for the first nine months of 2014, and for the corresponding periods provided for comparison, are reported in a specific item in the consolidated separate income statement called "Profit (loss) from Discontinued operations", while the financial effects are reported in two separate items in the statement of financial position;
  • MTV Group(Media business Unit): on 12 September 2013 Telecom Italia Media completed the sale of 51% of MTV Italia S.r.l. and its wholly owned subsidiary MTV Pubblicità S.r.l.. As a result, these companies have been excluded from the consolidation area;
  • La7 S.r.l. (Media Business Unit): on 30 April 2013 Telecom Italia Media completed the sale of La7 S.r.l., consequently the company left the consolidation area.

Telecom Italia Group

Revenues in the first nine months of 2014 amounted to 15,972 million euros, down 9.1% from the 17,564 million euros recorded in the first nine months of 2013 (-1,592 million euros). In terms of organic change, calculated by excluding the effect of changes in exchange rates and consolidation area, consolidated revenues were down 6.0% (-1,012 million euros).

Revenues, broken down by business unit, are as follows:

(million euros)

1.1 - 30.9.2014

1.1 - 30.9.2013

Changes

 

 

% of total

 

% of total

absolute

%

% organic

Domestic (*)

11,336

71.0

12,214

69.5

(878)

(7.2)

(7.2)

Core Domestic

10,551

66.1

11,403

64.9

(852)

(7.5)

(7.5)

International Wholesale

905

5.7

935

5.3

(30)

(3.2)

(2.6)

Olivetti

154

1.0

174

1.0

(20)

(11.5)

(12.0)

Brazil

4,617

28.9

5,280

30.1

(663)

(12.6)

(2.8)

Media and Other Assets (*)

51

0.3

108.6

 

(57)

 

 

Adjustments and eliminations

(32)

(0.2)

(38)

(0.2)

6

 

 

Consolidated total

15,972

100.0

17,564

100.0

(1,592)

(9.1)

(6.0)

The EBITDA for the first nine months of 2014 amounted to 6,588 million euros down by 552 million euros (-7.7%) compared to the same period of the previous year, with an EBITDA margin of 41.2%, up by 0.5 percentage points (40.7% in the first nine months of 2013). In organic terms, the EBITDA is down 450 million euros (-6.4%) compared with the same period of the previous year and the EBITDA margin is down 0.2 percentage points (41.2% in the first nine months of 2014 compared with 41.4% in the first nine months of 2013).

The following table shows a breakdown of EBITDA and EBITDA margin by business unit:

(million euros)

1.1 - 30.9.2014

1.1 - 30.9.2013

Changes

 

 

% of total

 

% of total

absolute

%

% organic

Domestic (*)

5,296

80.4

5,831

81.7

(535)

(9.2)

(9.1)

% of Revenues

46.7

 

47.7

 

 

(1.0) pp

(1.0) pp

Brazil

1,281

19.4

1,326

18.6

(45)

(3.4)

7.4

% of Revenues

27.7

 

25.1

 

 

2.6 pp

2.6 pp

Media and Other Assets (*)

11

0.2

(16)

(0.3)

27

 

 

Adjustments and eliminations

(1)

1

 

 

Consolidated total

6,588

100.0

7,140

100.0

(552)

(7.7)

(6.4)

% of Revenues

41.2

 

40.7

 

 

0.5 pp

(0.2) pp

The EBIT for the first nine months of 2014 amounted to 3,393 million euros; whereas in the first nine months of 2013 it amounted to 1,483 million euros and reflected the impact of the impairment loss on Goodwill attributed to the Core Domestic Cash Generating Unit for 2,187 million euros.

The organic change in EBIT is positive for 1,934 million euros; even excluding the mentioned impairment loss on Goodwill, the organic change compared to the first nine months of 2013 would be negative by 253 million euros.

Consolidated net profit attributable to Parent Company Shareholders amounted to 985 million euros (-902 million euros in the same period of 2013, due to the aforesaid Goodwill impairment loss).

Capex in the first nine months 2014 was 2,640 million euros, down 397 million euros on the first nine months of 2013, and breaks down as follows by operational sector:

(million euros)

1.1 - 30.9.2014

1.1 - 30.9.2013

Changes

 

 

% of total

 

% of total

 

Domestic (*)

1,792

67.9

2,025

66.7

(233)

Brazil

843

31.9

992

32.7

(149)

Media and Other Assets (*)

5

0.2

20

0.6

(15)

Adjustments and eliminations

Consolidated total

2,640

100.0

3,037

100.0

(397)

% of Revenues

16.5

 

17.3

 

(0.8) pp

Capex for the Domestic Business Unit dropped by 233 million euros compared with the same period of 2013. This reduction is entirely attributable to the more traditional investment components and led to certain platforms being abandoned and a number of industrial processes being simplified. These savings were partly redirected to developing next-generation networks (LTE and Fibre network, +102 million euros of investment compared with the first nine months of 2013) which accounted for 35% of network investments (27% in the first nine months of 2013). Furthermore, as highlighted above, in the first nine months of 2014, as a result of Telecom Italia's new market strategy for bundle mobile telephony plans, the costs of the customer subsidy for the purchase of handsets no longer had to be posted as intangible investments. In the corresponding period of 2013, 138 million euros were capitalised and amortised over the term of the contract (24 - 30 months).

Capex for the Brazil Business Unit recorded a decrease of 149 million euros compared to the first nine months of 2013. The change reflects a negative exchange rate effect of 100 million euros, without which the decrease would have amounted to 49 million euros. The capex are directed towards the continuous development of infrastructure, in accordance with the objective of improving the quality of service.

Cash flow from operations is positive by 2,272 million euros (positive by 2,456 million euros in the first nine months of 2013).

Adjusted net financial debt as of 30 September 2014 is 26,572 million euros, down by 235 million euros compared with 31 December 2013 (26,807 million euros) thanks to cash flow generated from operations.

In the third quarter of 2014, adjusted net financial debt was 786 million euros less than the figure at 30 June 2014 (27,358 million euros) thanks to positive cash generation and revenue from the sale of tax credits (IRES), which substantially neutralised the effects of the payment of income tax.

The liquidity margin as of 30 September 2014 is 12.3 billion euros (13.6 billion euros as of 31 December 2013), net of 0.3 billion euros relating to Discontinued Operations and consists of 5.3 billion euros in cash (7.1 billion euros as of 31 December 2013) and unused committed credit lines totalling 7 billion euros (6.5 billion euros as of  31 December 2013). This margin covers the financial liabilities of the Group falling due over a period exceeding the next 24 months.

Net financial debt carrying amount was equal to 28,061 million euros (27,942 million euros as of 31 December 2013).

Group headcount for the Group as of 30 September 2014, excluding the 16,544 units related to Discontinued Operations, was 65,872, including 53,050 in Italy (65,623 as of 31 December 2013, including 53,155 in Italy).

                                                              ***

Business Unit Results

Figures for Telecom Italia Media as of 30 September 2014 can be found in the press release issued on 04 November 2014, following the Company Board of Directors' meeting.

Domestic

As of 2014, in addition to Core Domestic and International Wholesale, the Domestic Business Unit also includes the Olivetti group. This different representation reflects the commercial and business position of the Olivetti group and the process of integrating its products and services with those offered by Telecom Italia in the domestic market. The data relating to the corresponding period of the previous year was therefore restated accordingly.

Domestic revenues, totalling 11,336 million euros (12,214 million euros in the first nine months of 2013), fell by 7.2% both in reported and organic terms.

In an economic scenario that still presents structural weakness, the performance of the first nine months of 2014 was 7.2% (-878 million euros) less than in the same period in 2013, with a fall of -5.0% in Q3, a significant recovery compared to both the preceding periods (Q2 of 2014: -8.2%, Q1 2014: -8.3%) and to the whole of 2013 (-9.5%).

These dynamics of recovery of revenues is specifically attributable to a progressive stabilisation of the customer base and the ARPU on traditional voice services, primarily on Mobile services, and growth in revenues from Fixed Broadband, ICT and Mobile Internet.

Highlights:

  • Core Domestic Revenues

Core Domestic revenues amount to 10,551 million euros and fell by 7.5% (11,403 million euros in the first nine months of 2013).

The performance of the individual market segments as compared with the same period of 2013 is as follows:

  • Consumer: the revenues of the first nine months of 2014 for the Consumer segment amounted to 5,414 million euros, with a reduction of 517 million euros compared to the same period of 2013 (-8.7%). While still negative, this performance confirms the recovery trend compared to the first months of the year, with a fall of -5.3% in Q3 2014 compared to the same period of 2013, an improvement over the values recorded in the preceding quarters (-9.2% in the second quarter, compared to the same period of the previous year, and -11.7% in the first quarter). This recovery is particularly evident in Mobile services (-335 million euros, or -12.4% in the first nine months of 2014; -6.6% in the Q3 2014, compared to -13.7% in the Q2 and -16.9% in Q1). This result is influenced by the improvement in competitive performance, with progressive stabilisation of the customer base and the ARPU on voice services, and the constant growth of Mobile internet. Fixed line business also shows signs of recovery from the deteriorating trend observed in the first half of the year: indeed, the revenues from services in the first nine months of 2014 present a reduction of 204 million euros, equal to -6.7%, with a performance in Q3 equal to -6.1% (compared to -7.9% in the second quarter and -6.2% in the first), thanks to maintenance of the market share and the positive trend in ARPU, supported by the higher proportion of customers with flat rate plans and service upgrades (Superinternet and Fibre) and growth in revenues from Broadband/Internet services;

  • Business: the revenues of the Business segment totalled 3,589 million euros, a reduction of 296 million euros compared to the first nine months of 2013 (-7.6%). While the performance of the third quarter was worse than that of the same period of 2013, it showed signs of improvement compared to the preceding periods, recording a worsening of -5.8% compared to the same period in 2013, with -9.1% in the second quarter and -7.8% in the first. The fall was due entirely to revenues from services (-347 million euros in the first nine months of 2014 compared to the first nine months of 2013), including -132 million euros on Mobile (-12.7%) and -221 million euros on Fixed-line (-8.2%). In particular on Mobile, despite the efficiency of the defence actions and the development of the customer base (which in fact grew by 3.3%), a drop in turnover on traditional voice and messaging services was confirmed (-147 million euros in the first nine months of 2014, compared to the same period of 2013), attributable to a dynamic of redirecting customers on plan formulas with a lower overall level of ARPU. The negative economic context and fall in prices on traditional voice and data services continued to influence Fixed-line business, but there were some signs of recovery in the third quarter, thanks to constant growth in ICT services (+6.0% in the third quarter of 2014, of which +17.5% in Cloud services);

  • National Wholesale: the Wholesale segment records revenues  of 1,373 million euros for the first nine months of 2014, down by 57 million euros (-4.0%) on the corresponding period of 2013. The reduction can mainly be attributed to the reduction of prices for mobile and fixed termination, the launch of the migration towards IP infrastructural solutions and the drop in prices on national roaming.

 

  • International Wholesale Revenues

The International Wholesale revenues for the first nine months of 2014 amounted to 905 million euros, down on the corresponding period of 2013 (-30 million euros, -3.2%). Revenues for Voice services (-15 million euros, -2.2%) and IP/Data services (-11 million euros, -5.4%) were down due to the effect of the development of competitive dynamics with a drop in prices.  The business segment dedicated to multinationals also fell slightly (-2 million euros, -5.3%) while revenues for Mobile services rose slightly (+3 million euros, +16.8%).

  • Olivetti Revenues

The revenues of the Olivetti group in the first nine months of 2014 amounted to 154 million euros, down by 20 million euros compared with the same period of 2013 (-11.5%).

A number of factors contributed to the fall in revenues such as, mainly, the slowdown in foreign sales (-13 million euros, of which 5 million euros in South America, 4 million euros in Europe and almost 4 million euros in the Far East, Middle East and Africa).

The EBITDA of the Domestic Business Unit in the first nine months of 2014 amounted to 5,296 million euros and recorded a reduction of 535 million euros compared to the corresponding period of 2013 (-9.2%, of which 2.2 percentage points can be attributed to the aforementioned different classification of the costs of subsidizing customers for the purchase of handsets), with an EBITDA margin of 46.7%, worsening slightly compared to the same period of 2013 (-1.0 percentage point). The result was mainly affected by the reduction in revenues from services (-928 million euros compared to 2013), only partially offset by the efficiency actions obtained through a selective control and containment of operating costs.

EBITDA in Q3 2014 was 1,795 million euros, down by 236 million euros compared with the corresponding period of 2013 (-11.6%).

The EBIT of the Domestic Business Unit for the first nine months of 2014 was positive, and amounted to 2,845 million euros (compared to 1,000 million euros in the same period of 2013); with a margin of 25.1% (8.2% in the first nine months of 2013). The EBIT performance reflects, in addition to the elimination of the 2,187 million euro impairment loss on goodwill for the Core Domestic Cash Generating Unit posted in 2013, the reduction in EBITDA previously described, partially offset by the reduction of 163 million euros in depreciation and amortisation and by the capital gains, amounting to around 38 million euros, deriving from the sale by Telecom Italia S.p.A. of a property it owned in Milan, for 75 million euros.

The organic EBIT for the first nine months of 2014 shows an increase of 1,846 million euros compared to the same period in 2013, calculated excluding the effect of the foreign exchange rate fluctuations for -1 million euros for International Wholesale. In addition, if the previously mentioned impairment loss on Goodwill is excluded, the year on year change in EBIT is a reduction of 341 million euros (-10.7%). EBIT in Q3 2014 was 982 million euros, down by 190 million euros compared with the corresponding period of 2013 (-16.2%).

The headcount, of 53,249 employees, fell by 128 units compared to 31 December 2013.

Brazil

(average real/euro exchange rate 3.10365)

The revenues of the TIM Brasil group in the first nine months of 2014 amounted to  14,330 million reais , recording a fall of 2.8% compared with the same period of 2013 (-408 million reais). Revenues from services reached 12,129 million reais, with a reduction of 230 million reais compared to 12,359 million reais in the same period of 2013 (-1.9%). Whereas revenues from product sales reduced from 2,379 million reais in the first nine months of 2013 to 2,201 million reais in the same period of 2014 (-7.5%); this decrease can be attributed to a reduction in the volumes sold, only partially offset by an increase in prices.

Mobile ARPU in the first nine months of 2014 was 17.6 reais compared to 18.4 reais in the same period of 2013 (-4,3 %). The ARPU, like the revenues from services, was affected by a further reduction, starting from February 2014, of the mobile termination rate.

Revenues in the third quarter of 2014 totalled 4,853 million reais, 230 million reais less than the same period last year (-4.5%); the fall was 162 million reais in services (-3,9%) while the reduction in handset sales was 68 million reais (-7.8%).

The total number of lines as of 30 September 2014 was estimated at 74,848 thousand, up by 1.9% compared to 31 December 2013, corresponding to a market share for the lines of approximately 26.9%.

EBITDA of 3,975 million reais was 274 million reais higher than the same period of 2013 financial year (+7.4%). The EBITDA increase was essentially sustained by the lower costs of materials and services partly offset by the higher costs of personnel and other operating costs. The EBITDA margin was 27.7%, up 2.6 percentage points on the first nine months of 2013.

EBITDA in Q3 2014 was 1,330 million reais, up by 81 million reais compared with the corresponding period of 2013 (+6.5%).

EBIT amounted to 1,729 million reais an improvement of 47 million reais on the first nine months of 2013. This is explained by the higher contribution of EBITDA, partially offset by increased depreciation and amortisation of 230 million reais (2,247 million reais in the first nine months of 2014 compared with 2,017 million reais in the same period of 2013).

EBIT in Q3 2014 was 568 million reais, up by 7 million euros compared with the corresponding period of 2013 (+1.2%).

Headcount stood at 12,507 employees (12,140 as of 31 December 2013).

                                                            ***

Events subsequent to 30 September 2014

Agreements amending the contract for the sale of the shareholding in the Sofora - Telecom Argentina group

Refer to what was published in the press releases issued on 25 October 2014 and 29 October 2014.

Auction for mobile telephony frequencies in Argentina

The auction procedures, announced by the Secretaria de Comunicaciones for the allocation of the frequency bands to be used for the Servicio de Comunicaciones Personales (“PCS”), the Servicio de Radiocomunicaciones Movil Celular (“SRMC”) and the Servicio de Comunicaciones Moviles Avanzadas (“SCMA”) were carried out on 31 October 2014.

The four companies that had pre-qualified participated in this competition: Telecom Personal S.A., Telefonica Moviles Argentina S.A., Arlink S.A. and AMX Argentina S.A..

In this competition, Telecom Personal (Sofora – Telecom Argentina group) was awarded:

  • one Lot for the SRMC service (3G),
  • two Lots for the PCS service (3G),
  • one Lot for the SCMA service (4G)

Telecom Personal offered a total amount of 658 million US dollars to acquire these frequency lots.

                                                            ***

Outlook for the 2014 financial year

The telecommunications market continues to be characterised by a fall in traditional services (access and voice) compared to an increase in innovative services (broadband and enabled broadband services); it is expected that the combined effect of these phenomena will determine a further overall fall in the domestic market, in any case more moderate than that seen in 2013, and the growth of the Brazil market.

In this context the Telecom Italia Group – as announced in the 2014 – 2016 Plan – will continue to defend its market shares, invest in the development of infrastructures, with a heavy increase in innovative investments destined in particular to Ultra Broadband, in order to maintain revenues from traditional services and promote the growth of revenues from innovative services, in compliance with its financial policies. At the same time the Telecom Italia Group will continue the path of transformation and increasing efficiency in industrial processes aiming for a structural reduction of the running costs even through the delayering and simplification of the platforms.

The results of 2014 confirm the improvement of the competitive dynamics in the Mobile sector and an increase in the development of ultra-broadband services. It is important to point out that the domestic market is still experiencing a dilution of the ARPU in traditional services, both Mobile and Fixed, due to a dynamic involving the redirecting of the Customer Base towards bundle plans that will in any case allow – with respect to a short-term reduction in profitability – greater stabilisation of expenditure and churn in the medium to long term. On the Fixed market this dynamic is also dictated by the need to respond, with commercial pricing actions, to competitive pressure which is higher than expected.

Despite these dynamics, which continue to create uncertainty regarding the stability of the Revenues and the margins, for the current year on the domestic market, in keeping with the forecasts and dynamics of the 2014-2016 three-year Plan of Telecom Italia, we expect to see the gradual recovery of the operating performance – also through the plans and actions to reduce and contain costs – and the financial results of the Group which as a whole remain in line and in keeping with the forecasts and operating performances implicit in the 2014-2016 three-year Plan of Telecom Italia.

Finally, with reference to the support actions aimed at strengthening the Group's financial position, previously illustrated in the 2014-2016 Plan, and in particular the initiatives to monetize the towers of the radiomobile network in Italy and in Brazil as well as the multiplexes of TI Media (or rather of the shareholding TI Media holds in Persidera S.p.A.), reference should be made to what has already been announced to the market, confirming that the activities aimed at implementing the mentioned projects are still underway and the information will be disclosed to the market once it is final.

                                                            ***

New calendar of 2015 financial events approved  

The calendar for the meetings to approve the financial reports of Telecom Italia S.p.A for 2015 is as follows:

  • 5 February – Board of Directors meeting to approve the preliminary data
  • 5  March - Board of Directors meeting to approve the draft financial statements for the year and the consolidated financial reports at 31 December 2014
  • 15 April - Shareholders' Meeting to approve the financial statements at 31 December 2014
  • 7 May - Board of Directors meeting to approve the first quarter report at 31 March 2015
  • 6 August - Board of Directors meeting to approve the half-year financial report for 2015
  • 5 November - Board of Directors meeting to approve the interim report on operations at 30 September 2015,

Any changes to the above dates will be communicated without delay.

The conference calls to present the accounting data to the financial community will normally be held after the Board of Directors meeting for their approval.

The Manager in charge of preparing the corporate accounting documents, Piergiorgio Peluso, hereby declares, pursuant to subsection 2, Art.154-bis of Italy’s Consolidated Finance Law, that the accounting information contained herein corresponds to the company’s documentation, accounting books and records.

Rome, 7 November 2014