I’ll turn now over the conference to Mr. Franco Bernabè.

Franco Bernabè

Thank you, and good morning, ladies and gentlemen. Thanks for attending Telecom Italia nine months 2011 results conference call.

The third quarter of 2011 has been very important for our group. While delivering a domestic up trend and insuring a continued double-digit performance in our Latin American operations, we also undertook important initiatives to secure future growth opportunities in both markets.

In Brazil, we acquired AES Atimus and successfully completed a EUR700 million equivalent capital increase of TIM Participações aimed at funding future CapEx requirements. In Italy, we’ve reached the successful outcome in the LTE spectrum auction, the active bidding which characterized the process indicated the importance that all mobile players in Italy ascribe to LTE development.

The final allocation of the essential 800 megahertz frequencies were able to satisfy only three out of the four infrastructure mobile operators. Notwithstanding the current difficult in the euro context, our domestic commercial value-focused strategies met with resilient consumer demand in the summer months and paved the way to visible improvements for both top-line and profitability.

In Latin America, TIM Participações lines grew in this quarter by about 3.7 million, securing its position as the second mobile player in Brazil. In Argentina, our fixed operations performed well in broadband and our mobile operator, Personal, registered a positive result for us. Overall, after a period of robust growth in Latin America and of TIM market shares strengthening in Italy, we reached a total of about EUR130 million consolidated lines on September 30, 2011.

Now let’s focus on the key results for the Group for the last nine months. Reported Group revenues increased by 10.9% year-on-year including the positive results of Telecom Argentina. Organically, the Group top line grew by 1.9% year-on-year, featuring an acceleration in third quarter to 3.7% year-on-year. Reported Group EBITDA was up 8.3% year-on-year, while it was down 1% on an organic basis, reaching EUR9.23 billion in the nine months of 2011.

If you liked this article you might like

Vivendi Faces Possible 300 Million Euro Fine From Italy Over TIM Deal

Telecom Italia CEO Cattaneo Said to Be Leaving Amid Vivendi Pressures

Vivendi Notifies EU it May Take Control of Telecom Italia

US Jobs Data Send a Signal to Diversify in the Eurozone

3 Must-Own Global Value Stocks for 2017