Telecom Italia S.p.A.: RESPONSE TO MOODYS - TELECOM ITALIA: GROUP SOLID AT INDUSTRIAL AND FINANCIAL LEVEL
09 Oktober 2013 - 7:03AM
Italian Regulatory (Text)
PRESS RELEASE
TELECOM ITALIA: GROUP SOLID AT INDUSTRIAL AND FINANCIAL LEVEL
Strong cash flow generation, 12.8 billion euro liquidity margin and
profitability among the highest in the sector
Milan, 08 October 2013 In response to Moody's downgrading, Telecom
Italia emphasises that the Group is solid both industrially and
financially, as demonstrated by its cash flow generation (expressed
as the difference between gross operating margin and investments)
of 32 billion euros in the last 5 years. Over the same period of
time, it has reduced its net financial position by 7.6 billion
euros, while investing a total of 25 billion euros in the countries
it operates in. Deleverage has always been, and will continue to
be, a priority for Telecom Italia, as part of its plan for the
sustainable development of its industrial activities. Over the
years Telecom Italia has pursued a prudent approach to financial
risk management, maintaining a liquidity margin at least equal to
the debt due in the next 18/24 months - at the end of June the
liquidity margin was 12.8 billion and adopting contractual
documentation for its refinancing that does not contain capital
repayment step-up nor rating-related acceleration clauses
Profitability remains at the highest levels found in the sector; at
30 June 2013, it stood at 38.9% at the Group level, reaching an
impressive 48.7% on its activities on the domestic market. As for
the effects of the downgrade on the Group's financial structure and
costs, see the full text of the communication issued on 2 August
2013, pointing out that because of the repayments made since then,
the nominal total of loans outstanding with the European Investment
Bank has fallen to 2,950 million euros.
Telecom Italia Press Office
+39 06 3688 2610 http://www.telecomitalia.com/media
Telecom Italia Investor Relations
+39 02 8595 4131
http://www.telecomitalia.com/investorrelations
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