Telecom Italia S.p.a. · MIL:TIT
Telecom Italia — H1 2012 Earnings Presentation
20 slides from Telecom Italia's earnings presentation, Aug 2, 2012
Slide 1: Telecom Italia 1H 2012 Results
TELECOM ITALIA GROUP 1H 2012 Results Milan, August 2nd, 2012 Telecom Italia 1H 2012 Results MARCO PATUANO
Slide 2: Safe Harbour
TELECOM ITALIA GROUP 1H 2012 Results Safe Harbour These presentations contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements re
Slide 3: Agenda
TELECOM ITALIA GROUP 1H 2012 Results Agenda Domestic 2Q12 Progress Report Fixed Business Mobile Business Cash Cost Rationalization & Operating Model Appendix MARCO PATUANO 2
Slide 4: Domestic Results: On-Track and Resilient
TELECOM ITALIA GROUP 1H 2012 Results Domestic Results: On-Track and Resilient Euro mln, Organic data, % Total Domestic Revenues Domestic Service Revenues -282 M€ 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 9,339 -3.0% 9,057 2Q 4,753 -3.6% 4,580 -2.3% -2.9% -3.1% -3.3% -3.7% -3.6% 1Q -2.4% 4,586 4,477 -6.3% -7.6%
Slide 5: Service Revenues Trend by Segment: Consumer & Corporate
TELECOM ITALIA GROUP 1H 2012 Results Service Revenues Trend by Segment: Consumer & Corporate Consumer Segment Trend – YoY% change Highlights 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Continued uptrend on Overall Consumer -2.6% Service Revenues proves our strategy on -2.8% Service and Value is winning -3.4%
Slide 6: Agenda
TELECOM ITALIA GROUP 1H 2012 Results Agenda Domestic 2Q12 Progress Report Fixed Business Mobile Business Cash Cost Rationalization & Operating Model Appendix MARCO PATUANO 5
Slide 7: Fixed: Revenue Dynamics
TELECOM ITALIA GROUP 1H 2012 Results Domestic Fixed: Revenue Dynamics Euro mln, Organic Data, % Total Fixed Revenues Fixed Revenues Trend – YoY % change -2.8% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3,349 Equipment 3,254 Equipment -37.0% +9.6% -11.3% -19.2% -15.4% -38.4% -37.0% Service -1.4% Service -2.1% -1.
Slide 8: Fixed: TI Access Performance
TELECOM ITALIA GROUP 1H 2012 Results Domestic Fixed: TI Access Performance Telecom Italia Access TI Line Losses -180k Reduction 21,965 21,562 21,382 1H’11 1H’12 Wholesale Wholesale +232k +46k 7,003 7,105 7,106 181 51 45 1 1Q11 2Q11 1Q12 2Q12 TI Retail 14,962 14,457 14,277 TI Retail -206 -183 -195 -1
Slide 9: Fixed: Focus on Broadband
TELECOM ITALIA GROUP 1H 2012 Results Domestic Fixed: Focus on Broadband TI Retail Broadband Accesses BB Service Revenues ‘000 € mln, % YoY Total 13,313 13,487 13,527 Markets -0.3% +1.4% 781 TI retail 7,169 7,092 7,037 accesses 772 770 Flat (%) 87% 88% 88% 2Q11 1Q12 2Q12 M/S 53.9% 52.6% 52.0% 1H10 1H
Slide 10: Agenda
TELECOM ITALIA GROUP 1H 2012 Results Agenda Domestic 2Q12 Progress Report Fixed Business Mobile Business Cash Cost Rationalization & Operating Model Appendix MARCO PATUANO 9
Slide 11: Mobile Revenues: 2Q12 Results at a Glance
TELECOM ITALIA GROUP 1H 2012 Results Mobile Revenues: 2Q12 Results at a Glance Euro mln, Organic Data Total Mobile Revenues Consumer: Business Generated Revenues Trend % YoY % YoY 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Total Mobile Revenues 1,817 -5.0% Handsets 1,726 81 +47.8% Total Service 120 Revenues 1,73
Slide 12: Mobile: Customer Base Trend
TELECOM ITALIA GROUP 1H 2012 Results Domestic Mobile: Customer Base Trend Euro mln, Organic Data Total SIM cards Net Adds ‘000 32,328 ‘000 32,227 32,225 New Lines 31,679 31,260 ~ +50 548 ~ -150 419 Completion of MTV 222 Mobile CB migration program* +1mln 101 -103 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4
Slide 13: Mobile Consumer: Replacing Price-per-Minute with Bundles
TELECOM ITALIA GROUP 1H 2012 Results Domestic Mobile Consumer Traditional Services: Replacing Price-per-Minute with Bundles Our Bundle/Community CB is constantly growing * Focus on TIM Young >10x Growth Sound CB Growth July 11 Dec 11 Jun 12 TIM Young Renewal Rate Loyalty Lock-in 2H11 +6p.p. 1H12 the
Slide 14: Mobile Consumer – Mobile BroadBand: Keeping the Growth
TELECOM ITALIA GROUP 1H 2012 Results Domestic Mobile Consumer – Mobile BroadBand Keeping the Growth Smartphones on TIM’s CB % of Small Screen Users with BB Options ~70% The Mobile BB # handsets,% Context in Italy* +1.3 mln ~3.0 mln ~50% 2Q11 2Q12 ~1.7 mln # of Data Connections 11.9 mln Mln, % +30% ~
Slide 15: Agenda
TELECOM ITALIA GROUP 1H 2012 Results Agenda Domestic 2Q11 Progress Report Fixed Business Mobile Business Cash Cost Rationalization & Operating Model Appendix MARCO PATUANO 14
Slide 16: Focus on 2Q12 Domestic EBITDA
TELECOM ITALIA GROUP 1H 2012 Results Focus on 2Q12 Domestic EBITDA Euro mln, Organic Data, % 1 2 3 4 2.291 2.206 (173) +27 +2 +31 +28 -85M€, -3,7% 2Q11 1Q11 Revenues Interconn. Costs Handsets Mktg&Comm. Fixed Opex* 1Q12 2Q12 costs Opex 1 •Wholesale: -38M€ mainly due to gross 3 •Robust growth on Mobi
Slide 17: Agenda
TELECOM ITALIA GROUP 1H 2012 Results Agenda Domestic 2Q12 Progress Report Fixed Business Mobile Business Cash Cost Rationalization & Operating Model Appendix MARCO PATUANO 16
Slide 18: Domestic Wireline Revenues 2Q11 2Q12
TELECOM ITALIA GROUP 1H 2012 Results Domestic Wireline Revenues Euro mln, Organic Data, % 1H12vs11 2Q11 2Q12 YoY % YoY % Total 3,349 3,254 (2.8) (2.9) Sparkle Group 332 362 9.0 8.9 Domestic Core Services 2,955 2,869 (2.9) (3.0) Voice & Access 1,410 1,327 (5.9) (5.2) Internet 389 398 2.3 1.4 Business
Slide 19: Domestic Mobile Revenues 2Q11 2Q12
TELECOM ITALIA GROUP 1H 2012 Results Domestic Mobile Revenues Euro mln, Organic Data, % 1H12vs11 2Q11 2Q12 % YoY YoY % Total 1,817 1,726 (5.0) (3.4) Wholesale (*) 88 74 (16.1) (16.7) Retail 1,729 1,652 (4.4) (2.8) o/w Services 1,648 1,533 (7.0) (5.1) o/w Business Generated (**) 1,425 1,351 (5.2) (
Slide 20: Progress on Domestic Efficiency Plan
TELECOM ITALIA GROUP 1H 2012 Results Progress on Domestic Efficiency Plan Euro mln, Organic Data, % Cash Cost Delta Cash Cost 1H12 vs 1H11 FY12 Trend Target FY : -0,5 Bn Euro Bln, Organic Data Abs 1H12 ITX +153 -254 ’12 vs ‘11 6.117 -50 2,3 -0,3 Total Opex * 4.633 -132 5.966 ITX FY11 FY12 E % on