RETELIT S.P.A. Milan, 8 August 2014
PRESS RELEASE
RETELIT: THE BOARD OF DIRECTORS APPROVES THE RESULTS OF THE FIRST QUARTER 2014The Group closed the first half of 2014 with economic and financial results in line with the budget: revenues amounted to € 18.1 million, the EBITDA was € 4.4 mlliion, the consolidated EBIT was a negative € 1.2 million with a loss of € 387 million
The Retelit Board of Directors, which met today, has approved the consolidated interim financial report at
30/06/2014.
Despite the reduction in revenues and EBITDA, the half-year ended with results in line with the budget planned for the first half of 2014. Below is a summary of key financial data for the period, compared with that for the first half of 2013:
consolidated revenues and operating income at 30/06/2014, equal to € 18.1 million, decreased by
8.3% (€ 19.7 million in the first six months of 2013); this decrease is mainly ascribable to the failure to renew a contract for international connectivity services in 2013;
consolidated EBITDA at 30/06/2014 amounted to € 4.4million, a decrease of 21.1% (€ 5.5 million in the first six months of 2013), justified, in addition to the loss of margin on the non-renewed contract for international connectivity services, also by increased personnel costs related to the expansion of the technical and sales organisations to support the activities envisaged in the Business Plan;
EBIT at 30/06/2014, with a loss of € 1.2 million,is in line with that reported in the first half of 2013;
the consolidated net result at 30/06/2014 was negative for € 387 thousand, in line with the first hafl of
2013.
Consolidated investments in the first half of 2014 amounted to € 3.6 million: the network was extendedby 69 km, reaching 7,722 km, of which 1,999 km in urban areas.
The net financial position at 30/06/2014 is positive for € 19.8 million, showing a slight decrease compared to the end of 2013 (€ 20.0 million), and the Group hasno financial liabilities.
The information currently available to the Company for 2014 does not allow us to confirm whether the economic results set out in the 2013-2017 Business Plan will be achieved. This is mainly due to the difficulties being experienced in implementing the envisaged international projects, which were undertaken in partnership with the shareholder Libyan Post Telecommunication and IT Company (LPTIC). In fact, the better-than-expected results obtained in the first half of this year for several traditional lines of business, such as the sale of IRU and the supply of fibre backhauling for mobile operators, did not compensate for the mentioned reduction of international connectivity projects. In line with the above, the variable amount pertinent to the Board of Directors, which would be paid out only in the event of the EBT of € 100 thousand being achieved for the current year, was not set aside for the reference period. Despite this, the Board of Directors, together with top management, will continue in its efforts to achieve net before-tax profit for the current year.
During the second half of the year, the Board of Directors is expected to approve a new strategic international Business Plan, which will alter the corporate scope through proposing expansionary and extraordinary transactions. These transactions could refer to extending the proprietary infrastructure through direct investment and the acquisition of companies with ready infrastructure both in Italy and abroad, which will create business synergies capable of producing results that are more than proportional in terms of increased sales and improved cost efficiency. The Board of Directors is determined to put the initial phase of this strategy in place during the current year, in order to accelerate the growth in economic results that has been envisaged for quite some time for the Company. The Board will also act to provide these projects with all the necessary financial resources for their adequate support.
It should be noted that the above figures are still being audited.
In August, a new Manager responsible for Corporate Financial Reporting, pursuant to Article 154-bis of Italian Legislative Decree No. 58 of 24 February 1998, was appointed following the Company's revocation of the previous Manager.
In August, the Investor Relator was replaced and this function has been assigned ad interim to the Chairman of the Board of Directors.
In compliance with the second paragraph of Article 154-bis of the Consolidated Act on Finance, the Company's corporate financial reporting officer, Mirko Endrizzi, declares that the accounting information in this press release corresponds to the accounting records.
With the availability of over 7,700 kilometres of fibre optics, 8 metropolitan networks and 18 data centres, Retelit is one of the leading Italian providers of data transmission services and infrastructure for the telecommunications and ICT markets. Since 2013, thanks to significant investment in new technologies, Retelit's product range has widened with new-generation ultra-broadband VPN services, as well as cloud storage and data- centre services providing added value and, since 2014, with the e-via brand, of services for medium and large companies and public administrations located in the vicinity of its fibre optic network. Retelit has been listed on the electronic stock exchange (MTA) of the Milan Stock Exchange since
2000.
Investor Relations Media Relations
Gabriele Pinosa
Tel. +39 022020451 inv.relations@retelit.it
Lucia Casartelli - Key4media
Tel +39 02 430019156
Mob. +39 346 2191801 l.casartelli@key4media.it
(€ th o us a nd ) | 30/06/2014 | 31/12/2013 |
Non-current assets: | ||
Ne twork i n fra s tructu re | 100,820 | 101,139 |
Oth e r pro pe rty, p l a n t a nd e qu i pme n t | 603 | 449 |
To ta l p rop e rty, pl a nt a n d e q ui p me nt | 101,423 | 101,588 |
Co nce s s i o ns , l i ce n ce s , tra d e ma rks a nd s i mi l a r | ||
ri ghts | 21,148 | 22,647 |
Oth e r i nta ngi b l e a s s e ts | 45 | 60 |
To ta l i n ta n gi b l e a s s e ts | 21,194 | 22,708 |
Eq ui ty i n ve s tme n ts | 0 | 0 |
No n-cu rre n t fi n a n ci a l a s s e ts | 14,549 | 14,549 |
Pre p a i d ta x a s s e ts | 7,200 | 7,200 |
Oth e r no n-cu rre n t a s s e ts | 311 | 260 |
To ta l o the r n o n-cu rre nt a s s e ts | 22,060 | 22,009 |
TOTAL NON-CURRENT ASSETS | 144,677 | 146,304 |
Current assets: | ||
Cu rre nt fi na nci a l a s s e ts | 4,937 | 4,261 |
Tra d e a nd mi s ce l l a ne ou s re ce i va b l e s , a n d | ||
oth e r curre nt a s s e ts | 14,707 | 15,308 |
of which related parties | 172 | 329 |
Ta x a nd VAT re ce i va b l e s a nd cu rre n t d i re ct | ||
ta xa ti o n | 52 | 30 |
Ca s h a nd ca s h e qu i va l e nts | 18,970 | 19,862 |
TOTAL CURRENT ASSETS | 38,666 | 39,461 |
TOTAL ASSETS | 183,342 | 185,765 |
Equity: | ||
I s s u e d s ha re ca p i ta l | 144,209 | 144,209 |
Re s e rve s a nd n e t i nco me fo r th e ye a r | (7,595) | (7,208) |
Equity and net income for the year | 136,613 | 137,000 |
TOTAL EQUITY | 136,613 | 137,000 |
Non-current liabilities: | ||
Emp l oye e be n e fi ts | 993 | 963 |
Provi s i on s fo r con ti n ge nci e s a n d ch a rge s | 2,991 | 2,880 |
No n-cu rre n t d e fe rre d re ve n ue | 20,578 | 20,575 |
TOTAL NON-CURRENT LIABILITIES | 24,562 | 24,418 |
Current liabilities: | ||
Tra d e a nd mi s ce l l a ne ou s pa ya b l e s , a nd o the r | 20,024 | 21,918 |
curre nt l i a bi l i ti e s | ||
of which related parties | 564 | 1,265 |
Ta x a nd VAT pa ya b l e s a nd cu rre n t d i re ct | 144 | 387 |
ta xa ti o n | ||
Cu rre nt de fe rre d re ve nu e | 1,999 | 2,041 |
TOTAL CURRENT LIABILITIES | 22,167 | 24,347 |
TOTAL LIABILITIES | 183,342 | 185,765 |
(€ thous and) | 30/06/2014 | 30/06/2013 |
Revenue | 17,785 | 19,097 |
Other i ncome | 288 | 602 |
Total revenues and operating income | 18,074 | 19,700 |
Raw ma teri a l s a nd outs i de s ervi ces | (8,862) | (9,486) |
of which related parties | 25 | 494 |
Pers onnel cos ts | (2,485) | (2,287) |
Other operati ng expens es | (2,376) | (2,410) |
OPERATING INCOME BEFORE AMORTIZATION, DEPRECIATION AND IMPAIRMENT | 4,351 | 5,517 |
Amorti s a ti on, depreci ati on and i mpa i rment of tangi bl e and i nta ngi bl e a s s ets | (5,283) | (6,347) |
Other provi s i ons a nd wri te-downs | (221) | (328) |
OPERATING INCOME | (1,153) | (1,158) |
Fi na nci a l i ncome | 792 | 838 |
Fi na nci a l expens e | (25) | (66) |
RESULT BEFORE TAXES | (387) | (387) |
I ncome ta xes for the yea r | - | - |
Deferred ta x l i abi l i ti es | - | - |
Profit/(Loss) for the period | (387) | (387) |
Net income/(loss) for the year attributable to equity holders of the Parent Company | (387) | (387) |
Net income/(loss)not transferred from the Income Statement | 12 | |
Total Profit / (Loss) for the period | (387) | (399) |
CONSOLIDATED CASH-FLOW AT 30/06/2014
******
(€ thous a nd) | 30/06/2014 | 30/06/2013 |
CASH FLOWS FROM OPERATING ACTIVITIES Profi t (l os s ) for the peri od Adjustments: Amorti za ti on Wri te-downs Cha nge i n empl oyee benefi ts Cha nge i n provi s i ons for conti ngenci es a nd cha rges Interes t a nd fi nanci al cha rges pa i d | (387) 5,283 76 31 111 (766) | (387) 6,347 197 17 (1,012) (771) |
CASH FLOWS GENERATED BY (USED FOR) OPERATING ACTIVITIES | 4,348 | 4,391 |
(Increas e)/Decrea s e i n trade recei vabl es a nd other current as s ets (Increas e)/Decrea s e i n ta x a nd VAT recei va bl es and di rect ta xati on Increa s e/(Decrea s e) i n trade pa ya bl es and deferred revenues Increa s e/(Decrea s e) i n ta x a nd VAT pa ya bl es a nd current di rect taxa ti on | 525 (22) (1,934) (243) | 882 79 (2,803) (184) |
NET CHANGE IN CURRENT ASSETS AND LIABILITIES AND OTHER CHANGES | (1,675) | (2,026) |
NET FINANCIAL FLOWS GENERATED BY (USED FOR) OPERATING ACTIVITIES | 2,673 | 2,365 |
CASH FLOWS FROM INVESTMENT ACTIVITIES (Inves tments ) i n property, pl a nt and equi pment Di s i nves tment of property, pl a nt and equi pment (Inves tments ) i n i nta ngi bl e a s s ets Net a cqui s i ti on of other non-current a s s ets | (3,160) 0 (444) (51) | (1,898) 8 (215) 43 |
CASH FLOWS GENERATED BY (USED FOR) INVESTING ACTIVITIES | (3,655) | (2,062) |
CASH FLOWS FROM FINANCING ACTIVITIES (Increas e)/Decrea s e i n fi na nci a l as s ets Cha nge i n s ha re ca pi ta l a nd res erves | 90 0 | (845) 2,195 |
CASH FLOWS GENERATED BY (USED FOR) FINANCING ACTIVITIES | 90 | 1,350 |
TOTAL CASH FLOWS | (892) | 1,653 |
CASH AND CASH EQUIVALENTS AT YEAR-START | 19,862 | 11,148 |
CASH AND CASH EQUIVALENTS AT YEAR-END | 18,970 | 12,801 |
|
distributed by
|
