De Agostini

Net Revenues

The group’s net revenues in 2010 were EUR 4,318 million, an increase of EUR 164 million (or 4%) on the previous year. A breakdown of these figures is shown in the table below.

The Publishing business posted net revenues of EUR 1,326 million, a fall of EUR 57 million (or around 4.1%) compared with 2009, which mainly affected the Partworks and Books business areas.

Net revenues of the Media & Communication business came in at EUR 642 million, an increase of EUR 82 million compared with 2009 (around 14.6%), due mainly to the effect of consolidating RDF Media from the date of acquisition (1 August 2010).

The Gaming & Services business posted net revenues of EUR 2,314 million, up by EUR 137 million (6.3%) compared with 2009. Growth was chiefly due to the increase in revenues from gaming machines in Italy following the launch of the new VLTs and in the number of AWPs installed (EUR 94 million), and to the positive fluctuation in exchange rates against the euro in the GTECH Lotteries business (EUR 59 million).

Lastly, net revenues for the Financial Investments business rose by EUR 3 million versus 2009, totalling EUR 37 million for the year. This was mainly due to commission relating to alternative asset management received by the FARE Holding Group.

EBITDA

The group recorded EBITDA of EUR 876 million for the year ending 31 December 2010, a rise of EUR 75 million (+9%) compared with the previous year. This breaks down as follows:

EBIT

The group’s ORDINARY EBIT for the year ending 31 December 2010 was EUR 428 million, after taking into account depreciation/amortisation and other ordinary non-cash items totalling EUR 439 million.

The improvement of EUR 73 million in the ORDINARY EBIT figure for 2010 compared with 2009 broadly reflects the improvement at EBITDA level.

Consolidated net loss

The table below shows the relationship between ORDINARY EBIT and consolidated net loss:

ORDINARY EBT for 2010 showed a positive figure of EUR 186 million, compared with a positive figure of EUR 152 million in 2009, after taking into account net financial income of EUR ‑242 million (EUR -203 million in 2009).

Non-ordinary items, which are included in the NON-ORDINARY EBT figure, totalled charges of EUR 632 million in 2010, compared with charges of EUR -300 million in 2009.

Note in particular the following items recorded in 2010:

• - Impairment of Assicurazioni Generali totalling EUR 404 million.
• - Other impairment of EUR155 million, of which EUR 70 million is for goodwill relating to Media & Communication, EUR 51 million for goodwill and other assets belonging to the GTECH G2 business and EUR 34 million for financial assets/investments.
• - Other one-off income/(charges) of EUR 73 million, of which EUR 56 million relates to costs associated with the refinancing of the Lottomatica Group.

Shareholders' Equity

At 31 December 2010, group and minorities’ shareholders’ equity totalled EUR 3,618 million (versus EUR 3,294 million at end-2009); group shareholders’ equity was EUR 2,169 million (EUR 2,311 million at 31 December 2009), while minority interests accounted for EUR 1,449 million (EUR 983 million at 31 December 2009).

The decrease of EUR -142 million in the group’s shareholders’ equity in 2010 was due to: net loss of EUR 560 million for 2010; the impact of the adjustment to the fair value of available-for-sale assets, totalling EUR 237 million, largely attributable to the complete transfer to the income statement of the negative fair value reserve recorded on the investment in Assicurazioni Generali at 31 December 2009; the impact of the exchange rate differences arising on the conversion of the financial statements of the group’s foreign totalling EUR +122 million.

Shareholders' equity relating to minority interests increased by EUR 466 million, mainly due to: net profit of EUR 9 million for 2010; capital increases, net of the associated costs, totalling EUR 464 million, relating in particular to the amount paid by the minority shareholders of Lotterie Nazionali for the new scratch card licence, and the capital increase reserved for the minority shareholders of RDF Media in connection with the roll-over of their shares in Zodiak Media; the impact of the exchange rate differences arising on the conversion of the financial statements of the group’s foreign subsidiaries, totalling EUR 70 million.

Net debt

The table below shows the group’s net debt broken down by business area:

Net Revenues

The group’s net revenues in 2009 were EUR 4,160 million, with a small increase (+1%) on the previous year. A breakdown of these figures are shown in the table below.

EBITDA

The group recorded EBITDA of EUR 801 million in 2009, a decline of EUR 35 million (-4%) on the previous year. EBITDA by business area is summarised in the table below:

EBIT

The group’s EBIT for 2009 came to EUR 252 million after the deduction of depreciation, amortisation and other non-cash items totalling EUR 422 million and one-off expenses of EUR 103 million.

The decline of EUR 33 million in EBIT compared with 2008 mainly reflects the decrease in EBITDA recorded during the year.

Net profit/loss

The group made a net loss of around EUR 273 million in 2009, compared with a net loss of EUR 125 million in 2008, after accounting for the 197 million Euro loss (before tax) from the unwinding of the TRES on Generali shares.

Shareholders' Equity

At 31 December 2009, group and minorities’ shareholders’ equity totalled EUR 3,294 million (versus EUR 2,993 million at end-2008); group’s shareholders’ equity was EUR 2,311 million (EUR 2,242 million at 31 December 2008), while the portion pertaining to minorities was EUR 983 million (EUR 751 million at 31 December 2008).

The increase of EUR 69 million in the group’s shareholders’ equity in 2009 was due to the net loss for 2009 (-273 million); the equity portion of De Agostini S.p.A.’s convertible bond issue (+147 million); the adjustment of EUR +166 million to fair value of available-for-sale assets.

Net financial position

The table below shows the group’s net debt broken down by business area:

Net Revenues

The group’s net revenues in 2008 were EUR 4,143 million, an increase of EUR 516 million (or around 14%) on the previous year. A breakdown of these figures are shown in the table below.

EBITDA

The group recorded EBITDA of EUR 825 million in 2008, a decline of EUR 46 million (-5.3%) on the previous year. EBITDA by business area is summarised in the table below.

EBIT

The group’s EBIT for 2008 came to EUR 274 million after the deduction of depreciation, amortisation and other non-cash items totalling EUR 390 million and one-off expenses of EUR 148 million.

The decline of EUR 244 million in EBIT compared with 2007 reflects the decrease in EBITDA, higher amortisation and depreciation charges and other non-cash items, and one-off expenses recorded during the year.

Net profit/loss

The group made a net loss of around EUR 125 million in 2008, compared with a net profit of EUR 72 million in 2007.

Shareholders' Equity

At 31 December 2008, group and minorities’ shareholders’ equity totalled EUR 3,011 million (versus EUR 4,112 million at end-2007); group’s shareholders’ equity was EUR 2,254 million (EUR 3,178 million at 31 December 2007), while the portion pertaining to minorities was EUR 757 million (EUR 934 million at 31 December 2007).
The decrease of EUR 924 million in the group’s shareholders’ equity in 2008 was due to a net loss for 2008; dividend distribution; the adjustment of EUR -591 million to fair value of available-for-sale assets.

Net debt

The table below shows the group’s net debt broken down by business area:

Net Revenues

The Group's consolidated net revenues for 2007 totalled € 3,647 million, an increase of € 809 million over the previous period (+29% approx.), as follows:

Gross Operating Margin (EBITDA)

In the financial year ended 31 December 2007 the Group recorded a Gross Operating Margin (EBITDA) of € 869 million, an increase of € 424 million over the previous financial year (+95.3%). Gross Operating Margin (EBITDA) by segment is as follows:

Operating Margin (EBIT)

In 2007, the Group's Operating Margin (EBIT) amounted to € 516 million after amortisation, depreciation and other non-monetary items totalling € 347 million. The growth in EBIT for the period ending 31 December 2007, compared with the corresponding figure for 2006, was approximately 76%, reflecting the improvement in EBITDA, which more than offset the additional amortisation, depreciation and other non-monetary items for the period.

Net Income

The Group's share of net income was approximately € 72 million for 2007, a decrease compared to 2006 due to the absence of extraordinary income from "Discontinued Operations". In particular, the latter resulted in a capital gain in the previous year due to the sale of the entire investment held in Toro Assicurazioni (€ 945 million).

Shareholders' Equity

As at 31 December 2007, the Group and minority consolidated shareholders' equity amounted to € 4,112 million (compared to € 4,205 million at the end of 2006). The Group's portion of shareholders' equity stood at € 3,178 million (€ 3,345 as at 31 December 2006), while minority interests totalled € 934 million (€ 860 million as at 31 December 2006).

Net Financial Position (NFP)

The Group's Net Financial Position is broken down by business sector in the table below: