Telecom Lead Europe: Telecom Italia’s Capex (capital expenditure) for nine months touched €3.380 billion, up 6 percent or by 190 million compared with the first nine months of 2011.
Revenues were flat at €22,061 million in first nine months of 2012.
Profit for Q3 2012 was €681 million, down 13.4 percent or by €105 million compared with the same period of the previous year.
Net Income at €1,926 million increased from€1,256 million in the first nine months of 2011.
READ complete financial result here
“2012 continues to suffer from recessionary tensions in the domestic market and from an economic slowdown in Latin American countries. Despite these adverse factors, the Group continues to pursue its goals of increasing revenues and preserving profits, which prove to be quite solid and among the best in this industry, thanks to efforts to continually boost our operating efficiency, allowing us to deliver on our commitment to develop next generation networks,” said Franco Bernabè, chairman of Telecom Italia.
Break down of Capex is as follows:
| (millions of euros) | 1.1 – 30.9.2012 | 1.1- 30.9.2011 | Change | ||
| percent | percent | ||||
| Domestic | 1,982 | 58.6 | 2,004 | 62.8 | (22) |
| Brazil | 966 | 28.6 | 807 | 25.3 | 159 |
| Argentina | 383 | 11.3 | 331 | 10.4 | 52 |
| Media, Olivetti and Other Operations | 49 | 1.5 | 48 | 1.5 | 1 |
| Adjustments and eliminations | – | – | – | – | – |
| Total Consolidated | 3,380 | 100.0 | 3,190 | 100.0 | 190 |
| percent of Revenues | 15.3 | 14.5 | 0.8 pp | ||
Telecom Italia said the €22 million reduction in the Domestic Business Unit is mainly due to a decline in the demand for delivery activities on new installations as a result of a slowdown and shrinkage of business deals for fixed-line access.
The Brazil Business Unit CapEx rose by €159 million (including a negative exchange rate effect for €53 million) mainly due to expenditures devoted to network infrastructure expansion.
In the Argentina Business Unit, CapEx went up by €52 million. In addition to increased subscriber acquisition costs, capital expenditures were directed towards the expansion and upgrade of broadband services to improve bandwidth and increase customers’ access speed as well as towards traditional fixed-line access to meet demand and backhauling to support mobile access growth. Telecom Personal mainly invested in the capacity and extension of the 3G network to drive internet mobile growth.
