Net consolidated revenues for the Olivetti Group in the first quarter of 2001 totalled 7,832 million euros against 7,330 million euros for the first quarter 2000, an increase of 1.8% on a comparable basis.
Operating costs and other net charges for the first quarter totalled 6,389 million euros (of which 5,740 million were for the Telecom Italia Group), against 5,818 million euros in the first quarter of 2000 (5,152 million for the Telecom Italia Group), representing 74.5% of revenues (excluding amortisation of consolidated goodwill), in line with the first quarter of 2000 (74.7%).
The net balance on non-recurring income and charges was positive by 83 million euros (of which 78 million related to the Telecom Italia Group) compared to 20 million euros in 2000.
Ebit was 1,526 million euros, in line with the result for the same period last year (1,532 million).
Net income from equity investments totalled 47 million euros (52 million in the same period last year); the net balance on financial income and charges was a charge of 631 million euros (384 million for the Telecom Italia Group), compared to a charge of 397 million in the prior-year first quarter (of which 141 million for the Telecom Italia Group). The rise in financial charges was due to higher financial indebtedness and changes in the Telecom Italia Group consolidation area.
Value adjustments to financial assets produced a writedown of 333 million euros (a writedown of 96 million in first quarter 2000), which related in the main to the Telecom Italia Group (298 million euros), specifically to the Group’s share of the results of subsidiary and associated companies valued using the equity method, and to amortisation of goodwill arising on the acquisition of the related equity investments.
Income taxes totalled an estimated 647 million euros, of which 643 million euros related to the Telecom Italia Group.
Net of taxes and earnings attributable to minority interests (441 million euros, attributable in full to Telecom Italia Group minority interests), the Olivetti Group had a consolidated net loss of 479 million euros in the first quarter of 2001 (a loss of 291 million in the first quarter of 2000).
Before amortisation of consolidated goodwill for Telecom Italia, the loss was 154 million eurosan increase of 105 million euros compared with the first quarter 2000. This increase arose mainly from the decrease of 22 million euros in Telecom Italia’s contribution to the Olivetti Group result and from the 59 million increase in financial charges at Olivetti as a result of the merger with Tecnost on 31 December 2000.
Olivetti Group total shareholders’ equity at 31 March 2001 was 32,527 million euros (14,308 million euros after minority interests) compared to 31,366 million euros at 31 December 2000 (13,856 million euros after minority interests), an increase of 1,161 million euros. Of this increase, 860 million arose from rights subscribed as of 31 March 2001 for the recent share-capital increase at Olivetti (in April the auction of unopted rights raised an additional 46 million euros).
Olivetti Group net financial indebtedness as of 31 March 2001 was 40,311 million euros, an increase of 2,787 million euros from 31 December 2000. The increase arose from the Telecom Italia Group (by 3,381 million euros, mainly for international acquisitions and other investments), offset in part by a 594 million euros reduction in the indebtedness of the other Olivetti Group companies, largely as a result of the proceeds raised by the Olivetti S.p.A. share-capital increase, minus outlays for first-quarter financial charges.
At 31 March 2001, the Group companies in the consolidation area had 126,069 employees, compared to 120,973 at 31 December 2000, an increase due largely to the inclusion of Entel Chile in the consolidation area.
