Italtel: Board of Directors Approves 2013 Financial Statements

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Mar 13, 2014, 11:20 ET

MILAN, March 13, 2014 /PRNewswire/ --

Growth of revenue and margins. Improvement in net financial debt.

Italtel's Board of Directors has approved the draft financial statements for the year ended December 31, 2013.

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The Italtel consolidated financial statements, prepared in compliance with IFRS, report revenue of €374.2 million for the year, up 13% on the €331.4 million recorded in 2012.

First margin (revenue minus cost of sales) grows from € 109.5 million in 2012 to €127.5 million, an increase of 16%. There is also improvement in the percentage profitability (growing from 33% to 34.1% of revenue).

EBITDA normalized, comprising the operating result plus amortization and depreciation minus restructuring costs and not recurring components, triples to €32.5 million, equal to 8.7% of revenue. In 2012 it was €10.8 million corresponding to 3.3% of sales.

Net Group financial debt improved significantly, decreasing to €181.6 million from €266 million in 2012. Net Shareholders Equity is positive for €74.4 million, even though net income is negative, mainly due to restructuring costs.

Stefano Pileri, CEO of Italtel, commented on the 2013 Financial Statements: "2013 was a very positive year for Italtel for several reasons: the reinforcement on the market in our relationship with customers and the quality and quantity of opportunities developed, the industrial acceleration of the offer portfolio both of proprietary products developed in our R&D labs and of engineering Professional Services. In addition, the capital and financial rebalancing and the process of structural reduction of industrial costs was carried out through positive uninterrupted discourse with Labor Unions".

In 2013 Italtel continued with the strategy focused on the diversification of the Group's customer base. Revenue from Large Enterprises and the Public Sector had a significant improvement of 31%, compared to 2012. In international markets, revenue from sales to Service Providers grew 13%, driven in particular by strong growth in Latin America (up 28% compared to 2012). In EMEA markets, Italtel consolidated its position both in the sales of proprietary products and in system integration activities for three of the largest international telecommunications Groups. Overall, foreign revenue of Italtel Group represents 42% of total revenue.

"We had a steady improvement of revenue and an increase of gross operating margin, in particular in Latin America. We launched several new products and services that earned a positive interest, enlarging the customer base and allowing us to participate in several international tenders. This confirms that the capacity for innovation is a key factor for Italtel, which has R&D labs dedicated to the development of products and solutions in the most innovative technologies, such as SDN, NFV and WebRTC," commented Pileri.

In 2013, Italtel, thanks to its NetMatch product, was positioned in the "Visionaries" quadrant of Gartner Magic Quadrant 2013 for Session Border Controllers. It was also the first vendor in Europe to achieve the interoperability certification for Microsoft Lync 2013 for its SBC. With reference to the development of engineering Professional Services, Italtel obtained important contracts for the network evolution of two of the largest telecommunication operators in the EMEA region.

Italtel Group

Italtel designs, develops, implements solutions for NGN and NGS; Professional Services dedicated to the design and maintenance of networks; IT System Integration Services; Network Integration and migration activities. Italtel counts among its customers more than 40 of the world's top TLC Operators and SPs. In Italy Italtel is also reference partner of Enterprises and Public Sector for the deployment of IP Next-Generation Networks and for the development of multimedia convergent services for their customers. Italtel is present in 25 countries including France, UK, Spain, Germany, Belgium, Poland, United Arab Emirates, Saudi Arabia, Oman, Argentina, Brazil.http://www.italtel.com.