http://www.morningstar.com/earnings/44973684-telecom-italia-spa-adr-ti-q3-2012.aspx

Telecom Italia SpA ADR TI
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/09/2012

Operator: Welcome to Telecom Italia Conference Call on Third Quarter 2012 Results. I’d like to introduce you to Mr. Alex Bolis, Head of Telecom Italia Investor Relations.

Mr. Bolis, please?

Alex Pierre Bolis - IR: Good morning, ladies and gentlemen. On today’s call, we will review Telecom Italia’s group third quarter 2012 results. We have with us this morning Mr. Franco Bernabe, the Group Chairman and CEO, and Mr. Marco Patuano, Chief Operating Officer, and Mr. Piergiorgio Peluso, Chief Financial Officer.

As usual, this event is being recorded and all participants will be placed in a listen-only mode during the company’s presentation. After TI’s remarks are completed, we will be pleased to take your questions. You may follow us today via simultaneous webcast that may be accessed from the company’s website www.telecomitalia.com, from which you can download or view our slide presentation during the conference call.

We would like to remind you that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those in the forward-looking statements as a result of various factors. Analysts are cautioned not to place undue reliance on those forward-looking statements which speak only as of the date of this presentation and are encouraged to consult the Company's periodic filings which are on file with United States' Securities and Exchange Commission.

I'll turn now the conference over to Mr. Franco Bernabe.

Franco Bernabe - Chairman and CEO: Thank you, Alex. Good morning ladies and gentlemen and thanks for attending Telecom Italia's third quarter 2012 results conference call.

Despite the tougher context, the Telecom Italia Group year-to-date performance allows us to confirm our 2012 targets. Economic challenges have become tougher in Italy as GDP fell by 2.9% in the third quarter. Small and medium-size enterprises are still confronted with considerable difficulties, while credit remains scarce. Large corporations have further streamlined their budgets and have taken a very selective approach in spending. Consumer confidence has softened, however the overall slowdown in telecommunication services spending has not been a strong as in other sectors.

In fact, demand for innovation is growing and this remains important for our strategy. This complex environment we confirmed our domestic value focus strategies, which have continued to payoff in terms of customer satisfaction and profitability, while keeping us in line with our full year targets.

We are also pushing forward on the next generation network investments. This has allowed us to be the first Italian operator to announce the start operating services. In Brazil, the macroeconomic environment showed some modest improvements and competition remained by and large rational. The third quarter was mainly affected by regulatory discontinuities, which as you know recently extended from network related issues to the decision of introducing deeper cuts to mobile termination rates from 2014. Although on November 1, the current glide path was confirmed until 2013. Importantly, organic EBITDA improved in the third quarter, as our management succeeded in delivering a good net adds performance in August proving after the July ban how solid our business is.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.