RETELIT S.P.A. - REVENUES OF €42.1 MILLION, UP 13.3% COMPARED TO €37.2 MILLION IN 2014
- Strong growth in EBITDA, up to €11.0 million - EBITDA margin 26.2% - up 39.4% on the €7.9 million of 2014
- EBIT negative for €0.8 million, a solid improvement on the negative EBIT of €9.3 million of 2014
- PROFIT for the year of €3.4 million compared to a loss of €7.9 million 2014
- Progressive quarterly growth continues: revenues +16.9% YoY to €12 million, EBITDA almost doubled to €3.7 million and a return to positive EBIT for €0.6 million
- Trade orders up 69.3% to €46.2 million compared to €27.3 million in 2014
- Net financial position: positive by €11.5 million, compared to a NFP positive by €15.7 million at 31 December 2014
- Extension of the Business Plan through to 2020 with improvement of income, equity and financial targets
Milan, 22 March 2016 - the Board of Directors of Retelit S.p.A. ("Retelit" or the "Company"), met today and reviewed and approved the consolidated Group results and the draft financial statements for Retelit as at 31 December 2015.
The Chairman of Retelit, Dario Pardi, commented: "The period results, obtained in a macroeconomic context that is still on a downturn, confirm that the operating and strategic choices made in the Business Plan were the right ones. Having exceeded the set targets, both in terms of growth and margins, allow us to be particularly satisfied and optimistic about future developments. This achievements were captured in the revision of the 2015-2019 Business Plan extended to 2020, which confirms the guidelines and improves the income and equity targets. More specifically, we believe that the good performance of the Wholesale market, the potential that the Company is expressing with regards to business customers and the progress made on the AAE-1 project will deliver positive results as from this year, a whole year ahead of the forecasts for a return to operating profit as had been previously announced.
The solidity of the results achieved allows us to enjoy complete peace of mind over the Group's growth path in the reference markets and the innovative markets that we have recently embraced. With this new-found solidity, the company can also play a key role in implementing the Government's ultrabroadband strategy, which is currently not included in the Business Plan objectives".
CONSOLIDATED SUMMARY DATA
2015 2014 var.
(values in Euro thousands)
Production value | 42,104 | 37,167 | 13.28% |
Value Added (1) | 17,138 | 13,141 | 30.42% |
Operating margin before depreciation, amortization, financial expenses and taxes (EBITDA) | 11,043 | 7,920 | 39.43% |
Operating Result (EBIT) | (781) | (9,314) | 91.61% |
Pre-taxresult | 3,418 | 7,801 | 143.82% |
Profit/(loss) for the period | 8.1% | -21.2% | |
Net margin percentage (2) | |||
no. | no. | ||
Average workforce | 76.6 | 64.8 | 18.21% |
difference between production value and purchases of raw materials, external services and other operating costs
Profit/(loss) for the year/value of production
INCOME STATEMENT
Consolidated revenues of the Retelit Group for FY 2015 amounted to €42.1 million, up 13.3% on the
€37.2 million of the same period of the previous year. Revenues from telecommunications services increased by 9.6% to €33.9 million compared to €31.0 million in 2014, revenues of concessions rights of use and network maintenance showed an increase of 37.1% to €7.0 million compared to €5.1 million in 2014, benefiting from the fibre-optic links to the sites of mobile operators issued during the period.
A breakdown in percentage terms according to market of revenues from core business reveals:
National Wholesale 44%, International Wholesale 48%, Business (Corporate and PA) 8%.
During the year, the commercial business generated new orders worth €46.2 million (measured over the full duration of the contract), up 69.0% on the €27.3 million generated in 2014 and higher than the business plan objectives. 70% of new orders related to the National Wholesale market, 16% to the International Wholesale market and 14% to the Business market. The churn rate has reduced considerably as compared with last year and is also below the plan data.
The gross operating margin (EBITDA) booked in 2015 came to €11.0 million, showing great improvement (more than 39%) on the €7.9 million of the previous year, with an EBITDA margin of 26.2%, up on the 21.3% of 2014. This growth, which exceeded the plan objectives, was made possible thanks to the increased revenues and the improved mix, along with the optimisation in the management of the infrastructure and was only partly impacted by the increase in personnel costs following improvements to the technical and commercial structures aimed at implementing the activities envisaged in the Business Plan.
EBIT is negative for €0.8 million, showing a clear improvement on FY 2014, when it was negative for
€9.3 million. It should be noted that the 2014 result was considerably influenced by the impairment of
€5.8 million applied to the fixed assets relative to the grid infrastructure following impairment testing conducted in accordance with the provisions of IAS 36.
This year, impairment testing revealed no critical issues. The recoverable value of the grid infrastructure and the investment value in the pipeline AAE-1 were verified separately with the assistance of a major advisory firm.
Net profits stand at €3.4 million as compared with the loss of €7.9 million last year, benefiting from
€4.3 million in terms of the results of financial operations. More specifically, the result includes a contribution of total €3.2 million due to the effects of derivative forward currency instruments subscribed in December 2014, of which €1.8 million financial income connected with the fair value measurement as at 31 December 2015 and around €1.4 million to the exchange gains realised following use of the currency acquired as a forward purchase during the period. The forward currency derivatives, contractualised for a total of US$ 35.7 million in December 2014, have a residual amount at the reference date of US$ 18.7 million.
PERFORMANCE DURING THE FOURTH QUARTER 2015
€000 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 2015 | Q32015 | Q42015 | Change YoY % |
TOTAL REVENUES | 8,850 | 10,243 | 9,549 | 10,134 | 10,442 | 11,979 | +16.9% |
EBITDA | 1,588 | 1,981 | 2,296 | 2,464 | 2,540 | 3,743 | +88.9% |
EBIT | (1,717) | (6,444) | (458) | (608) | (343) | 628 | n.s. |
NET PROFIT | (1,433) | (6,061) | 3,466 | (1,268) | (67) | 1,287 | n.s. |
The continuous, progressive quarterly growth continues also in the fourth quarter, confirming it as the year's best. In the fourth quarter of 2015, total revenues and operating income amounted to €12 million, up 17% from €10.2 million in the fourth quarter of 2014. Specifically for the quarter, compared to the same period of 2014, telecommunications services, which represent the core activities of the group and services of revenues from the sale of rights of use show, respectively, an increase of +10% and +42%.
EBITDA grew by 89% to €3.7 million compared to the fourth quarter of 2014 thanks to the performance of revenues and an improved mix, despite higher personnel costs as a result of the strengthening of the technical and commercial structures aimed at the implementation of activities under the Business Plan. EBIT is back to a positive €0.6 million after a series of negative quarters, confirming that the interventions made during the year have been successful. It is specified that the quarter was also characterised by an important concession contract of rights to use infrastructures.
BALANCE SHEET
The net financial position is positive by €11.5 million, compared to €15.7 million at 31 December 2014. The financial position is composed of cash and cash equivalents for €12.4 million, a current financial receivable related to the effect of the fair value valuation at 31 December 2015 of the forward currency derivatives for €1.1 million, and debt relating to the loan granted by Banco Popolare Soc. Coop. during the period of €2.0 million.
During 2015, the Retelit Group made investments in the amount of €30.2 million, of which the main amounts were as follows:
Retelit S.p.A. issued this content on 22 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 April 2016 09:00:08 UTC
Original Document: http://www.retelit.it/public/CMS/Files/2877/CS%20Approvazione%20Bilancio%20al%2031%20dicembre%202015%20-%20EN.pdf
