Telecom Italia S.p.A.
Telecom Italia S.p.A.: Board of Directors approves the 2004 accounts -Part 2/2
Ad hoc announcement §15 WpHG – Part 2
TELECOM ITALIA SPA SHAREHOLDERS’ MEETING CONVENED
Telecom Italia S.p.A.: Board of Directors approves the 2004 accounts -Part 2/2
Ad hoc announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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TELECOM ITALIA SPA
The 2004 accounts data are presented in comparison with data from 2003 that
has been recalculated by backdating to January 1, 2003, the effects of the
integration of IT Telecom SpA and EPIClink SpA into Telecom Italia SpA. The
merger was actually implemented on December 31, 2004, with effect for
accounting and tax purposes from January 1, 2004. Comparisons on equivalent
consolidation terms exclude the effects of the transfer of IT Telecom SpA’s
“Development” division to TIM SpA.
Parent company revenues amounted to 16,126 million euro, slightly lower than
in 2003 (-0.6%). Revenues registered organic growth of 48 million euro (up
0.3%) in 2004, as adjusted for changes in the scope of consolidation.
The gross operating result, equal to 7,540 million euro, registered a 19
million euro increase compared with 2003 (up 0.3%). Organic growth of 63
million euro (0.8%) was achieved when adjusted for changes to the scope of
consolidation. The gross operating result corresponded to 46.8% of revenues
from sales and services (46.3% for 2003).
Operating income, equal to 4,234 million euro, registered growth of 136
million euro (+3.3%) compared with 2003. Organic growth was 179 million euro
(+4.4%) when adjusted for changes to the scope of consolidation. Operating
income corresponded to 26.3% of revenues, against 25.2% for 2003.
The result before extraordinary items and tax was 3,923 million euro, up 511
million euro compared with 2003 (3,412 million euro). This result benefited
from a 641 million euro improvement in the balance of financial performance (-
1,772 million euro for 2004, against -2,430 million euro for 2003), which was
only partially offset by a 266 million euro reduction in the balance of income
and charges from equity interests (1,461 million euro for 2004, against 1,727
million euro for 2003).
The parent company made a net profit of 2,124 million euro, 522 million euro
lower than for 2003. The Parent company’s reduced net income can essentially
be ascribed to the benefit in last year’s net income arising from 1,266
million euro in tax benefits arising from the Olivetti/Telecom Italia merger.
Net financial borrowings was 31,257 million euro, a reduction of 4,344 million
euro on the 2003 figure.
SHAREHOLDERS’ MEETING CONVENED
The Telecom Italia Board of Directors has added to the agenda for the
Shareholders’ Meeting already convened (see press release disseminated on
January 23, 2005) the approval of the financial statements and the election of
supplementary members of the Board.
In view of the size of the net profit from operations and the favorable
outlook, a greater remuneration of share capital than last year is being
recommended, with the distribution of a dividend calculated on the basis of
0.1093 euro for each ordinary share (5% more than the 2004 dividend) and
0.1203 euro for each savings share.
Dividends shall become payable on April 21, 2005; the ex-dividend date is
April 18, 2005.
In view of the current process of integrating TIM into Telecom Italia, the
Shareholders’ Meeting is called upon to supplement the Board of Directors of
the “new” Telecom Italia with the experience and professionalism proven during
management of the mobile business. To this end, TIM CEO Marco De Benedetti
and independent Board member Enzo Grillo have been selected. The appointees
have served on the TIM Board since 1999 and 2001, respectively.
Curricula for these two candidates may be consulted on the Telecom Italia
Group web site.
Further information please find on the website http://www.telecomitalia.it/
Telecom Italia S.p.A.
Piazza degli Affari 2
20123 Milan
Italy
ISIN: IT0003497168
WKN: 120470
Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in
Berlin-Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart
End of ad hoc announcement (c)DGAP 24.02.2005
242123 Feb 05
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