Consolidated net revenues for the first nine months of 2000 totalled 22,337 million euro (of which 21,468 million attributable to the Telecom Italia Group, gross of amounts due to third-party telecommunications carriers). Revenues for Olivetti operations other than the Telecom Italia Group grew by 15.1%.
Operating costs and other net recurring charges totalled 18,099 million euro (of which 16,092 million for the Telecom Italia Group), equivalent to 81% of consolidated revenues for the period. They included 990 million for amortisation of consolidated goodwill in respect of the purchase of Telecom Italia (of which 722 relating to the Olivetti Group).
Non-recurring income was 884 million euro, including 625 million for the Telecom Italia Group (mainly disposals of equity investments, business units and property) and a 204 million gain from the sale on the market of 43.9 million Telecom Italia shares by Tecnost.
Non-recurring charges totalled 892 million euro. This included 835 million for the Telecom Italia Group, of which 559 million for restructuring expenses relating to workforce downsizing at Telecom Italia.
Earnings before interest and taxes amounted to 4,230 million euro, or 19% of net revenues.
Income from equity investments (202 million euro) comprised dividends, related tax credits and gains on the sale of shares and securities not held as fixed assets.
Other financial income and charges, net, reflected a negative balance of 1,263 million euro, of which 476 million for the Telecom Italia Group.
Value adjustments to financial assets generated a writedown of 691 million euro, including 675 million for the Telecom Italia Group largely relating to the share of the result of non-consolidated companies and amortisation of goodwill arising on the acquisition of these companies.
Income taxes amounted to an estimated 2,293 million euro, of which 2,090 million relating to the Telecom Italia Group.
After taxes and minority shareholders (1,207 million euro), the Olivetti Group had a consolidated net loss of 1,022 million euro. Before amortisation of the Group’s share of consolidated goodwill for the Telecom Italia Group (722 million), the loss was 300 million.
The Olivetti Group’s total shareholders’ equity at 30 September 2000 was 25,374 million euro (8,427 million after minority interests), compared with 26,905 million euro at 30 June 2000 (9,118 million after minority interests).
Consolidated net financial indebtedness amounted to 37,587 million euro, of which 18,616 million euro for the Telecom Italia Group, an increase of 9,031 million euro compared with 30 June 2000. The increase arose from a 9,261 million euro increase in Telecom Italia Group debt (largely for the purchase of the Seat Pagine Gialle equity investment and for the dividend payout to minority shareholders), offset in part by the 230 million euro debt reduction for all the other Olivetti Group companies as a result of the collection of Telecom Italia dividends, which fully covered their requirement in the period.
