The document provides an overview of Telecom Italia's domestic market results for FY2010 and plans going forward. It summarizes that FY2010 domestic revenues decreased by 7.4% due to declines in both mobile and fixed line revenues. However, EBITDA only declined by 2.9% due to strong cost control measures. Looking ahead, Telecom Italia's domestic plan focuses on improving performance in mobile, fixed line, and innovative services businesses, with a goal of increasing domestic EBITDA in 2011.
The global outsourcing industry is constantly evolving through new contracting award characteristics and an expanding universe of successful service providers. ISG's TPI Index helps industry participants, enterprises and organizations keep pace and capitalize from the latest data on outsourcing trends. It is the authoritative source for marketplace intelligence related to outsourcing: transaction structures and terms, industry adoption, geographic prevalence and service provider metrics.
Highlights of the fourth quarter of 2010. Net sales amounted to SEK 27,556m (28,215) and income for the period was SEK 677m (664), or SEK 2.38 (2.34) per share. Net sales increased by 1.6% in comparable currencies.
The global outsourcing industry is constantly evolving through new contracting award characteristics and an expanding universe of successful service providers. ISG's TPI Index helps industry participants, enterprises and organizations keep pace and capitalize from the latest data on outsourcing trends. It is the authoritative source for marketplace intelligence related to outsourcing: transaction structures and terms, industry adoption, geographic prevalence and service provider metrics.
Highlights of the fourth quarter of 2010. Net sales amounted to SEK 27,556m (28,215) and income for the period was SEK 677m (664), or SEK 2.38 (2.34) per share. Net sales increased by 1.6% in comparable currencies.
TIM GROUP FY '23 Preliminary Results.pdfGruppo TIM
On February 15, 2024, TIM management has presented in conference call its FY 2023 preliminary results approved by the Board of Directors.
Il 15 febbraio 2024 il management di TIM ha presentato in conference call i risultati preliminari del FY 2023 approvati dal Consiglio di Amministrazione.
Il 9 novembre 2023 il management di TIM ha presentato in conference call i risultati del Q3 2023 approvati dal Consiglio di Amministrazione.
On November 9, 2023, TIM management has presented in conference call its Q3 2023 results approved by the Board of Directors.
I risultati di TIM per il primo trimestre 2022, illustrati in webcast e conference call il 5 maggio 2022.
TIM 2022 First Quarter Results, presented on May 5, 2022, via webcast and conference call.
1. Telecom Italia – Domestic Market
FY10 Results & Plan Update
MARCO PATUANO
2. 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 regarding the intent, belief or current expectations of the customer base,
estimates regarding future growth in the different business lines and the global business, market share, financial
results and other aspects of the activities and situation relating to the Company and the Group.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and
actual results may differ materially from those projected or implied in the forward looking statements as a result of
various factors.
Forward-looking information is based on certain key assumptions which we believe to be reasonable as of the date
hereof, but forward looking information by its nature involves risks and uncertainties, which are outside our control,
and could significantly affect expected results.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the
date of this presentation. Telecom Italia S.p.A. undertakes no obligation to release publicly the results of any
revisions to these forward looking statements which may be made to reflect events and circumstances after the
date of this presentation, including, without limitation, changes in Telecom Italia S.p.A. business or acquisition
strategy or planned capital expenditures or to reflect the occurrence of unanticipated events. Analysts and investors
are encouraged to consult the Company's Annual Report on Form 20-F as well as periodic filings made on Form 6-K,
which are on file with the United States Securities and Exchange Commission.
MARCO PATUANO 2
3. Agenda
Telecom Italia Domestic 2010 Results
Telecom Italia Domestic Plan
Mobile Business
Fixed Business
Innovative Services
Focus on 2011 Domestic EBITDA
MARCO PATUANO 3
4. Domestic – Strong Cash Cost Control Invested to Regain
Competitiveness in the Mobile Business Euro mln, Organic data, %
Revenues EBITDA
% on Revenues 48.7%
46.4% +2.3 p.p.
-1,607 M€ Target
-7.4% Reached
21,682 20,075
-290M€
10,064 -2.9%
9,774
Mobile -10.5%
8.597 Service revenues
7.692 4Q 2.303 -0.5% 2,292
-8.4%
3Q 2.675 -4.8% 2.546
-4.3%
Wireline Service revenues 2.548 -2.9%
14.758 -4.3% 14.123 2Q 2.475
1Q 2.538 -3.0% 2.461
2009 2010 2009 2010
Highlights
Trend % Improving quarter on quarter Fixed retail revenues
Mobile revenues impacted by significant customer
1Q10 2Q10 3Q10 4Q10 base repositioning
Continued progress on COGS, G&A and Personnel
costs reduction
Positive cash flow generation* (+1.8% YoY) through
capex discipline
-7.1% -7.5% -7.7% -7.2%
*EBITDA-CAPEX
MARCO PATUANO 4
5. Domestic Fixed: TI Access Performance
Telecom Italia Access Evolution TI Retail Line Loss Evolution
‘000 Access ‘000
Total TI 22,289 -33 22,256 -134 22,122
2008 2009 2010
Wholesale 4.937 +1,221 6.158 6.771
+613
-746
-1,255
Retail 17.352 16.097 15.351 -1,862
Updated
Target*
2008 2009 2010 * Original Target <1,000
Reached
Wireline Retail Revenues Trend Highlights
Euro mln, Organic data, %
10,437 -6.6%
9,743 Strong improvement in 2010 line losses trend
4Q 2.672 -5.8% 4Q10 line losses (233k ) affected by :
2.518
2.504 aggressive competitors‟ promos
3Q -5.8% 2.359
reduction of TI advertising pressure
2Q 2.636 -7.0% 2.452
TI confirms its focus on Quality of Service to sustain
1Q price premium
2.625 -8.1% 2.413
2009 2010
MARCO PATUANO 5
6. Domestic Fixed: Focus on Broadband
TI Retail Broadband Accesses Highlights
‘000
Total Italian
11,164 12,294 13,082 2010 ARPU supported by a strong increase of Flat
BB accesses
offers penetration
6,754 +246 7,000 +175 7,175
4Q10 BB net adds affected by strong OLOs
Free aggressiveness
4Q10 ARPU: competitive pressure in Top segment,
83% 86% stable in Consumer and Business
Flat (%) 77%
Total
Market
2008 2009 2010
Share 60.5% 56.9% 54.8%
Broadband ARPU Broadband Service Revenues
Euro/month/line Euro million, %;
+1.5% +5.8%
1,465 1,550
18.3 18.6 388
4Q 377 +2.9%
3Q 370 +5.1% 389
2Q 360 +7.8% 388
1Q 358 +7.5% 385
2009 2010 2009 2010
MARCO PATUANO 6
8. Domestic Mobile: Service Revenues Key Trends
Service Revenues
%, Organic data
1Q10 2Q10 3Q10 4Q10
Dec
-6.8%
-7,2% -7,5% -8,9%
-9,9%
Outgoing Voice Revenues Traditional VAS (MSG) Revenues Interactive Revenues – YoY Change
% % Euro mln
1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10 +12.2%*
1.160
1.070
-10,2% -3,0%
-10,9% -4,7%
-12,7% -8,3%
-14,1% -12,0%
2009 2010
* Normalized Try & Buy
MARCO PATUANO 8
9. Mobile Business in 2010: Investing to be Back in the Market
Repositioning Strategy From To
Value for Money proposition to improve Customer CB Decreasing Increasing
Satisfaction as a long term retention strategy
Close the price gap vs competitors on traditional Traffic/usage Decreasing Increasing
services and stimulate a significant volume rebound
Focus on Mobile Data and new markets Financials based on Premium Price Cash Cost savings
reinvestment
Outgoing Price & Volumes CSI – Consumer Mobile
0 .8 Change yoy % 72,95 73,66
71,17 72,15 71,39
Average Price
Outgoing Voice -2 6 .3
Outgoing Voice 2 0 .1 1Q09 1Q10 2Q10 3Q10 4Q10
Volume TIM vs. Best competitor
-4 .2 -4.8 -3.4 -3.8 -3.1 -2.3
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Source: GFK-Eurisko
…with some execution shortfalls
Aggressive Promos
Reduced efficacy in high value customers lock-in
Low focus on Messaging
Limited use of handsets to increase CB loyalty and trigger BB Mobile revenue growth
MARCO PATUANO 9
10. Consumer Mobile Broadband: Big Screen “OK”, Small Screen
“Acceleration Needed”
Market features Network impact/
TIM Positioning
and value proposition Arpu* Generation
Addressable market ~13.7€ Market leadership (36% M/S)
• Customers with Excellent QoS
Laptops
Customers priorities
Big Screen Gross adds (mln)
• Always On
BIG • Price ~2.3GB
SCREEN • Speed 1.2
Operators priorities 0.75
• Pricing schemes to
protect MBs value
• Quality of Service GB/month Arpu 2009 2010
• Focus only started in 4Q10
Addressable market • Product portfolio enhancement
• Whole CB • Development of offer+product bundles
Customers priorities
• Devices TIMx Smartphone (000) Smartphones Sold (000)
~7.8€
SMALL • Fast connection Dec‟10 Smartphones
on total H/S sold ~35%
Operators priorities
SCREEN • Policy for handsets 3.5x ~240
(selective subsidy) >210 ~120
~0.3GB
• ARPU uplift
GB/month Arpu Jun10 Dec10 1Q10 4Q10
(*) browsing related
MARCO PATUANO 10
11. Agenda
Telecom Italia Domestic 2010 Results
Telecom Italia Domestic Plan
Mobile Business
Fixed Business
Innovative Services
Focus on 2011 Domestic EBITDA
MARCO PATUANO 11
12. Italian TLC Market Evolution and Competitive Scenario
Domestic Market by Technology Competitive Scenario
Bln €
46,9 47,3
Media
3,8 Increasing
Over
ICT the Top
(“OTT”)
9,0 Stable
Media
IT Telcos Player
TLC Players
Products 3,9 Decreasing
16,8 Slightly Handsets
Mobile
Increasing Vendors
Fixed 13,4 Decreasing
2010 2013
MARCO PATUANO 12
13. Fixed and Mobile BB: Consumer Market Evolution
~25.2 Mln Households:
~12.0 Mln Broadband
(Fixed and/or Mobile)
1,6 1,6
3,1 1,1
0,4 2,0 3,1
0,7
7,3 0,1
8,0 7,7 7,3
7,5
25,2
6,1
4,1
2,5
1.1
No BB Fixed BB Only F+M Mobile BB 2003 2004 2005 2006 2007 2008 2009 2010
Broadband Only
Fixed BB Only Fixed+Mobile BB Mobile BB Only
A fresh market still to be tapped
Mobile BB is complementary to Fixed BB
* Source: Between – Broadband Report July 2010, Company data
MARCO PATUANO 13
14. Agenda
Telecom Italia Domestic 2010 Results
Telecom Italia Domestic Plan
Mobile Business
Fixed Business
Innovative Services
Focus on 2011 Domestic EBITDA
MARCO PATUANO 14
15. Mobile: Traditional Core Services
Objectives Actions KPIs
GROWTH (mln SIM) Customer Base
Mantain competitive pressure on gross adds, with ~33%
Stable
M/S
limited use of promotional offers ~35
Moving towards MNP break-even ~32
31
Strengthen the VALUE
Offers segmentation: Lock-in offers for High Value
Customer Base customers, continuous push on Community
2010 2011 2013
Push on bundle offers (000) MNP Balance
Price per minute stabilization
2010 2011 2013
SATISFACTION
Improve Customer Satisfaction and reduce =
the gap vs. best competitor
~(0.4)
(0.9)
VALUE
Different promos for different clusters of
€/month
customers approached on a 1:1 basis ARPU
CRM to Protect Maintain focus on loyalty and up-selling
Slight
Value with particular focus on High Value customers Decrease
Win-back valuable customers 19.7
LOCK-IN
Lock-in offers with Smartphone at favourable
2010 2011 2013
conditions
Customer Pre-retention Unit for High Value customers
MARCO PATUANO 15
16. Mobile Broadband Consumer: Catching Growth
Opportunities
Objectives Actions KPIs
Big Screen Gross Adds (mln)
Protect Leadership
1,4 ~1.6
BIG Maintain leadership in a 4 Players market 1,2
SCREEN Offers based on QoS (Priority) for Premium
2010 2011 2013
customers
Web Users (mln)
Market penetration (*)
Benchmark Push cross selling activities for ADSL ~4.8
2,3 3,0
consumers
~9%
~7%
CRM plan to contrast inactivity/churn
2010 2011 2013
ITA UE15 Market
Share
~ 36% ~ 37%
Fully Exploit Growth Opportunities Handsets sell-in and TIMx Smartphone (mln)
~1.4
SMALL Strong presence in the handsets market ~1.0 >40%
TIMx Smartphone
SCREEN Keep subsidies under control ~+20%
Continuous push on “Tutto Compreso” with % Smartphone ~30% >+80% >50%
Market penetration (*) Smartphones
Benchmark 2010 2011
Upselling on Customer Base
Small Screen Active Users (mln)
~18% New markets opportunities: Tablet, e-readers
~16% >5.0
Apps as Mobile Internet: boost on TIMStore 1,5 2,7
(synergy with TEF)
ITA UE15
2010 2011 2013
*Source: COCOM Report
MARCO PATUANO 16
17. Agenda
Telecom Italia Domestic 2010 Results
Telecom Italia Domestic Plan
Mobile Business
Fixed Business
Innovative Services
Focus on 2011 Domestic EBITDA
MARCO PATUANO 17
18. Fixed: Continued Access Value Protection
Objectives Actions KPIs
ACQUISITIONS
Push on win-back (mln) Total Accesses
Advertising: continuous presence with mix on 16.1 15.4
>14
media channels differentiated depending on
customer segments
Distribution channels: re-balancing acquisition
2009 2010 2013
mix with stronger contribution from Push
channels and renewed focus on shops Market
71.4% 68.4% ~64%
Share
Protect
VALUE
Access
Greater efficiencies on loyalty with focus on
(mln) Line Losses Evolution
High-End customers
Increase penetration of flat/bundle offers
2009 2010 2011 2013
VALUE PROPOSITION
Quality <0.6 -0.4
-0.7
Innovation -1.3
MARCO PATUANO 18
19. Fixed Broadband: Leveraging on Innovation
Objectives Actions KPIs
Defend market position and market share
BB Customers Base (mln)
New promotions: no price war
~ 7.5 8.0
Offer segmentation 7.2
New services to drive up ARPU and % Flat
differentiate offering (e.g.: Pronto PC 86% 89% >90%
Offers
assistance)
2010 2011 2013
Broad Band Fiber Activations (000)
Innovation in access to support ARPU Fiber Activations (000)
High Quality ADSL ~ 120
Fiber: launch in 2H 2011
Develop new ways to use ADSL 2011 2013
Cubovision Device OTTV with lower bandwidth
requirements: addressable market from 40% BB ARPU (euro/month)
(IPTV) to 90% (Cubo) BB lines Increase
18.6 Stable
Cubo de-materialization: access content
with a multi-platform approach
(Connected TV, Blu-Ray, pc)
Hybrid devices: Tablet, smartphones (wi-fi 2010 2011 2013
enabled)
Innovative Cubovision sales (000)
Services Adjacent markets
Open the content distribution platform to
Content Providers ~ 280
Launch of Content Cubovision Suite : VOD,
catch-up TV, MUSIC, gaming, betting, …
2011 2013
Quality of content ensured E2E thanks to CDN
MARCO PATUANO 19
20. Agenda
Telecom Italia Domestic 2010 Results
Telecom Italia Domestic Plan
Mobile Business
Fixed Business
Innovative Services
Focus on 2011 Domestic EBITDA
MARCO PATUANO 20
21. Business Segment: Innovative Integrated Approach
Confirmed
Objectives Actions KPIs
Leverage on Impresa Semplice distinctive Market share on fixed access (%)
branding in the SME market
Defend Improve quality 69,4 ~68 ~66
Value Develop F-M Integrated Systems (single
billing, single caring)
Increase line winback rate from OLO‟s 2010 2011 2013
Push on mobile BB penetration
Market share on mobile human lines (%)
Ramp-up in Encourage IT services adoption rate through
Innovative bundle with our best selling integrated offer 46,2 ~46 ~48
Services
Penetration
Further develop TLC + IT solutions of IaaS and 2010 2011 2013
PaaS through the E2E control of the network
Develop offerings for vertical markets ICT Revenues (€mln)
Evolve towards
Go-to market partnership with system Cagr „10-‟13
the Cloud +~12%
integrators w/o infrastructures 818
Computing Upgrade IT delivery and assurance processes
model to the Telco standards 2010 2011 2013
MARCO PATUANO 21
22. Agenda
Telecom Italia Domestic 2010 Results
Telecom Italia Domestic Plan
Mobile Business
Fixed Business
Innovative Services
Focus on 2011 Domestic EBITDA
MARCO PATUANO 22
23. Focus on 2011 Domestic EBITDA
Euro Bln, Organic Data, %
9.8 2
1 2 3 44
>9.4
-4%
∆ Price MTR Impact Euro Mln
Mobile Mobile F-M Fixed
Incoming ITX Revenues ITX
Revenues Cost Cost*
OLO
Mobile
OLO
Fixed
+Int‟l* * net of Intercompany
2010 Revenues Interconn. Handsets Mktg & Fixed 2011
costs costs Comm. Opex Opex (*)
1 3
MTR reduction and symmetry
Supporting BB and Mobile
glide path offsetting related Top
Customer Base growth
Line decline
2 4
Selective growth of
Consolidating Efficiency Programs
Handset/Smatphone Revenues to
Results on Fixed Opex
support Mobile BB development
(*) Industrial + Personnel + G&A = Fixed Opex
MARCO PATUANO 23