Cagliari, 10 May 2012
Tiscali S.p.A.'s Board of Directors has approved the results
as at 31 March 2012
ƒ Consolidated revenues totalling EUR 59.7 million;
ƒ Gross operating result at EUR 17.4 million (-5.6% YoY);
ƒ Net EBITDA after provisions of EUR 14. million (+ 25.5% YoY);
ƒ Positive Group EBIT of EUR 4.1 million, compared with a negative balance of EUR
2.3 million in 1Q2011;ƒ Group net profit of EUR 0.3 million, compared with a loss of EUR 6.4 million in
1Q2011;ƒ Gross Margin percentage up sharply at 52,4% (46,3% in 1Q2011);
ƒ Media Revenues up by 11.6% YoY to EUR 5.2 million (1Q of 2011 EUR 4.6 million);
ƒ Positive free cash flow for EUR 7.6 million;
ƒ Total Broadband customers equating to 479 thousand; mobile customers up 53,8%;
ƒ Negative net financial position of EUR 195.8 million, an improvement compared
with a negative balance of EUR 202.4 million in the same period of 2011.Tiscali's Board of Directors has approved the quarterly report as at 31 March 2012. The results once again reflect the efforts made by the company in a particularly complex market context, where considerable rationalisation of its operating structure responds to the pressure on margins of the telecommunications business. Tiscali continued with the consolidation of its position with regard to web services, also focusing specifically on innovative communications services.
Tiscali Group: Consolidated Revenues at EUR 59.7 million - satisfactory growth once again in Media Revenues - Gross Margin percentage up - Indirect costs down
Tiscali Group revenues during the first quarter of 2011 came
to EUR 59.7 million, down with respect to the balance of EUR
69 million recorded in the same quarter of 2011.
During the first quarter of 2012, internet access and voice
services - the Group's core business - represented around 83%
of total turnover. The Gross Operating Result before
provisions came to EUR 17.4 million, compared with a figure
of EUR 18.5 million in 1Q2011 (-5.6% YoY).
As at 31 March 2012, the number of ADSL customers came to
around 479 thousand, compared with an activated client figure
as at 31 March 2011, of around 541 thousand. The number of
clients already activated and linked via the Tiscali network
infrastructure (unbundling) came to around 337 thousand (370
thousand in the 1st Q of 2011). The decrease with respect to
the corresponding figure for 2011 mainly reflects the impact
of the cancellation during 2011 of lines relating to
defaulting or silent customers, a process started in the
second half of 2010 and completed in 2011. This process, as
already indicated in the past, has made it possible to make
important savings in operating costs. During the 1Q2012, 3000
defaulting customers have been cancelled.
Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
During the first quarter of 2012, total mobile customers
amounted to more than 153 thousand, up
53,8% when compared with the 1st Q of 2011.
Access: equating to 77,2% of total revenues
The segment in question, which includes revenues from broadband (ADSL) and narrowband (dial- up) internet access services, the flat component of the bundled offers and VoIP, generated revenues during the quarter of EUR 46.1 million, representing around 77,2% of the Group's total revenues, down slightly compared to the figure for the same period in 2011 (EUR 50 million). The decrease is attributable to a decrease in customer base and to the natural contraction of the narrowband segment.
Voice: 5.7% of total revenues
The Voice segment includes traditional and wholesale
telephone services. During the first quarter of
2012, voice service revenues came to EUR 3.4 million, down
with respect to the corresponding figures in the 1st Q of
2011 (EUR 8.1 million). The decrease is due, besides the
natural decline of analogue voice, to the sharp decline in
wholesale services operated as a result of the low margin of
the same.
Business Services: 6% of revenues
Revenues from business services (VPN, housing, hosting services, domains and leased lines), excluding those from access and/or voice products for the same customer base already included in their respective business segments, amounted in the first quarter of 2012 to EUR 3.6 million, down with respect to the EUR 4 million in the 1st Q of 2011. This is mainly due to the negative effect on revenues arising from the termination of services delivered to the former subsidiary Tiscali UK.
Media and value added services: +11.6% YoY
In the first quarter of 2011, the revenues in the media and added value segment (linked to direct and indirect advertising through commercial contracts with search engines) amounted to EUR 5.2 million, an increase of 11.6% compared to the figure for the 1st Q of 2011 (EUR 4.6 million). The increase continues to be higher than the trend for the entire market (which showed a grow of 8,5%) and is attributable to the rise in traffic on the properties managed by the concessionary agent TISCALI:ADV and the increase of its customer base, achieved thanks to the focusing of the editorial product on the information segment, the strong coverage of direct customers and the verticalisation of the targets, which lead to an improved profit of the traffic. As a point of fact, all the network sites in 1Q2012 developed more than 3.4 billion pages visited, registering growth of 19.3% with respect to the same figure in the 1st Q of 2011 (more than 2.9 billion pages visited).
GROSS OPERATING RESULT (EBITDA)
The Gross Operating Result for the quarter, before provisions
for risks, write-downs, depreciation and amortisation, came
to EUR 17.4 million, down with respect to the corresponding
balance of EUR
18.5 million in the first quarter of 2011 (which reflected
the positive effect of VAT recover for more than EUR 2
million). However, the percentage figure disclosed growth of
2.4 points, as impact on sales revenues, coming to 29.2%.
EBITDA net of write-downs of receivables and other provisions
was EUR 14. million in the first quarter of 2012, up 25.5%
compared with the same balance for 2011 of EUR 11.1 million.
Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
Indirect operating costs during the first quarter of 2012 came to EUR 14.3 million (23% of revenues), a reduction of 12.2% when compared with the same balance in the previous year (EUR16.3 million, 23.6% of revenues).
OPERATING RESULT (EBIT)The operating result (EBIT) for the first quarter of 2012, net of provisions, write-downs and restructuring costs, revealed a positive balance of around EUR 4.1 million, a clear improvement with respective to the negative balance of EUR 2.3 million in the same period last year. The sharp improvement is due to the decrease in amortisation/depreciation (also following the revision of the useful life of certain fixed tangible and intangible assets and customer activation costs) and the lower provision to the allowance for doubtful receivables.
NET RESULT
The Group's net result was a profit of EUR 0.3 million, up
with respect to the comparable figure for
2011, a loss of EUR 6.4 million.
As at 31 March 2012, the Tiscali Group held cash, cash
equivalents and bank deposits totalling EUR
5.4 million, against net financial debt, at the same date, of
EUR 195.8 million (EUR 200 million as at
31 December 2011).
Eur 000 Notes | 31 March 2012 | 31 December 2011 |
A. Cash B. Other cash equivalents C. Securities held for trading D. Cash and Cash Equivalents (A) + (B) + (C) E. Current financial receivables F. Non-current financial receivables (1) G. Current bank payables (2) H. Current portion of non-current debt (3) I. Other current financial payables (*) (4) J. Current financial debt (G) + (H) + (I) K. Net current financial debt (J) - (E) - (D) - (F) L. Non-current bank payables (5) M. Bonds issued N. Other non-current payables to third parties (**) (6) O. Non-current financial debt (N) + (L) + (M) P. Net Financial Debt (K) + (O) | 5.434 5.434 8.021 8.215 380 16.616 11.182 126.266 58.371 184.637 195.820 | 6.564 6.564 - 13.835 9.625 581 24.040 17.476 124.417 58.068 182.485 199.961 |
(*) includes leasing short term debt
(**) includes leasing long term debt
Investor Relations 3Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
Notes:
(1) Includes the bank payables of Tiscali Italia S.p.A. and Tiscali S.p.A. for EUR 8 million;
(2) Includes the short-term component equal to EUR 8.2 million relating to payables to Senior Lenders, which includes principal and interest portions repayable within 12 months;
(3) Includes EUR 0.4 million of short-term leasing of the subsidiary Tiscali Italia S.p.A.;
(4) The entire amount of EUR 126.3 million relates to the long-term component of the debt due to Senior Lenders; (5) Includes the "Sale and Lease Back Sa Illetta" debt for EUR 57.6 million.
In order to ensure consistency with the data provided in previous reports, the above table includes guarantee deposits under other cash equivalents and non-current financial receivables. The table below provides a reconciliation of the above financial position with the same statement prepared in accordance with Consob Communication DEM/6064293 dated 28 July 2006, so as to provide clarity.
EUR million | 31 March 2012 | 31 December 2011 |
Consolidated net financial debt Other cash equivalents and non-current financial receivables Consob consolidated net financial debt | 189.4 6.4 195.8 | 193.5 6.4 200.0 |
Investment were made during the quarter for around EUR 6.4 million essentially relating to the acquisition of new customers. Furthermore, in the same period the Company generated a positive Free cash flow of EUR 7.9 million.
Significant events during the first quarter of 2012Tiscali S.p.A.: 2011 draft financial statements approved
On 30 March 2012, Tiscali's Board of Directors approved the 2011 draft financial statements.
Business outlook and prospects
In a market context which sees great pressure on margins
deriving from the strong competition on TLC services, and an
area of forecast growth on web and Over The Top services, the
Company is concentrating its management efforts on
rationalisation and turning the user base to profit, with
particular attention to containing the churn and focusing on
the acquisition of customers in the LLU covered areas. This
action was aimed at improving the cash flow generation to
service financial debt and working capital. Particular
attention will be paid to the improvement of the collection
cycle vis-à- vis bulk customers as well as the improvement of
the ADSL customer activation procedures, with a consequent
decrease in the average activation times and rise in the
redemption.
The development of new converging communication and rich
communication services (such as indoona and streamago) plays
an important role for the purpose of more efficiently using
the IT and network infrastructure and improving the user
experience. In this regard we note the continued growth of
indoona customers and the recent launch of the service
Streamago Premium, one of the first services on the market to
enable the live streaming of events with a plug & play and
low-cost service for businesses, organizations and
associations.
With regard to the Media segment, the objective is to
consolidated the market positioning of the network and thus
continue with the growth process implemented.
Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
The results presented confirm the endeavour made by
management with regard to the operational management so as to
maintain satisfactory performances despite the difficult
macro-economic context and particularly challenging
competitive market situation.
The Group's senior debt includes financial and operating
covenants. As at 31 March 2012, said covenants had been
observed.
Note that the interim management report as at 31 March 2012
shall be made available to the general public as per the
formalities and within the deadlines laid down by law.
Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
CONSOLIDATED INCOME STATEMENT (EUR million) | 31 March 2012 | 31 March 2011 |
Revenues Other income Purchase of materials and outsourced services Payroll and related costs Other operating (income) charges | 59.7 0.5 32.9 8.9 1.0 | 69 2.8 42.8 9.5 1.0 |
Gross Operating Result (Adjusted EBITDA) | 17.4 | 18.5 |
Write-downs of receivables from customers Stock option plan cost | 3.4 - | 7.3 - |
Gross Operating Result (EBITDA) | 14 | 11.2 |
Restructuring costs, provisions for risk reserves and write downs Amortisation/depreciation | 0.1 9.8 | 0.5 13.0 |
Operating result (EBIT) | 4.1 | (2.3) |
Net financial income (charges) | (3.5) | (3.6) |
Pre-tax result | 0.7 | (5.9) |
Income taxes | (0.3 | (0.5) |
Net result from operating activities (on-going) | 0.3 | (6.4) |
Result from assets disposed of and/or destined for disposal | - | - |
Net result | 0.3 | (6.4) |
Minority interests | - | - |
Group Net Result | 0.3 | (6.4) |
Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
CONSOLIDATED BALANCE SHEET (EUR million) Non-current assets Current assets | 31 March 2012 191.1 105.1 | 31 December 2011 194.4 112.7 |
Total Assets | 296.2 | 307.1 |
Group shareholders' equity Shareholders' equity pertaining to minority shareholders | (129.7 - | (130.0) - |
Total Shareholders' equity | (129.7) | (130.0) |
Non-current liabilities Current liabilities Liabilities directly related to assets sold | 198.4 227.5 | 197.4 239.6 0.9 |
Total Liabilities and Shareholders' equity | 296.2 | 307.1 |
Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
STATEMENT OF THE APPOINTED EXECUTIVEI, the undersigned, Luca Scano, executive in charge of drawing up the corporate accounting documents of Tiscali SpA, declare - pursuant to Article 154.2 bis of the Italian Finance Consolidation Act - that the accounting information contained in this press release corresponds to the documentary results, books and accounting records of the parent company and to the information provided by the companies included in the consolidation area.
Luca Scano
Executive in charge of drawing up the Company's accounting documents
This press release contains certain forward-looking statements based on current expectations and projections in relation to future events. These forward-looking statements may be affected by known or unknown risks, uncertain events and the assumptions made. This press release also contains unaudited pro forma financial data. Tiscali does not undertake to publish updates or modify any forward-looking statements, either to provide new information or in response to future events or other circumstances. In light of the aforementioned risks, uncertainties and assumptions, the forward-looking statements contained in this press release may not come to fruition. Any statement relating to past performance or activities should not be considered a guarantee of future performance or of such activities continuing in the future.
Information on TiscaliTiscali S.p.A. (Borsa Italiana. Milan: TIS) is one of the leading alternative telecommunications companies in Italy. Tiscali provides its private and business customers with a vast range of services: Internet access through dial-up and ADSL, as well as voice, VoIP, media, and added-value services and other technologically advanced products.
As at 31 March 2012 Tiscali reported around 479 thousand ADSL customers in Italy. Of these, around 339 thousand are Dual Play customers.
The Tiscali website may be accessed at www.tiscali.it.
Investor Relations 8Gianluca Nonnis
Tel. +39 070 46011 - ir@tiscali.com
Press OfficeImage Building
Mara Baldessari - Simona Vecchies
Tel: 02 89 01 13 00 - tlc@imagebuilding.it
Tiscali S.p.A. Sa Illetta
09122 Cagliari
Italy
www.tiscali.it
distributed by |