UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 FOR THE MONTH OF SEPTEMBER 2006 TELECOM ITALIA MEDIA S.P.A. (Translation of registrant's name into English) VIA CRISTOFORO COLOMBO 142, 00147 ROME, ITALY (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: FORM 20-F [X] FORM 40-F [ ] Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ] Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ] Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. YES [ ] NO [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _______
PRESS RELEASE
THE BOARD OF DIRECTORS APPROVES THE INTERIM REPORT AS AT 30 JUNE 2006
Revenues: 97.8 million euro, up by 17.1% (+18.7% on a like-for-like basis) with respect to the first half of 2005
EBITDA: -52.4 million euro (-1.7 million euro with respect to 50.7 million euro in the first six months of 2005); like-for-like change +2.3 million euro (+4.6%)
LA7 Free to Air: strong increases in advertising revenues (+15.2%) and audiences (+15%). Like-for-like change in EBITDA +2.2 million euro (+11.6%) with respect to the first half of 2005
MTV Free to Air: increase in domestic advertising revenues (+4.6%) led by the development of the new platforms, revenues from which were 9.9 million euro (compared to 6.5 million euro in the first half of 2005)
Terrestrial digital: revenues of 8.6 million euro (2.2 million euro in the first half of 2005)
Milan, 6 September 2006 – The Board of DirectorsofTelecom Italia Media, which met todayunderthe chairmanship of Riccardo Perissich, examined andapprovedtheirreport for the first half of 2006.
Telecom Italia Media Group results for the first half of 2006
TheConsolidated Revenuesfor the first half were97.8 million euro,showing a growth of17.1% (+18.7%at a like-for-like level) with respect to 83.5 million euro in the corresponding period of 2005. The significant increase compared to 2005 was led by domestic advertising, which grew much faster than market which remained substantially stable in the same period (around 1% in the first five months of the year), and the positive contribution of the Pay per View Revenues on Digital Terrestrial Television.
TheEBITDA for the 1sthalf-year of 2006 were -52.4 million euro, with respect to -50.7 million euro in the corresponding period of 2005. Net of the changes in the scope and extraordinary charges, the EBITDA recorded an improvement of+2.3 million euro (+4.6%). This result includes the increase in profitability of TV Free to Air, the impact on TV DTT of the costs incurred for the development of the contents on the new “free” channels (e.g. La7 Sport) in part compensated by the improvement of the margins of PPV, and the positive effect of 40% cut in overhead costs with respect to the first half of 2005 (-5.1 million euro) following the merger between La7 and TI Media.
TheOperating Result for the first half of 2006 was -79.0 million euro (-67.5 million euro in the first half of 2005) and was influenced, in addition to the above-mentioned operational factors, by the full impact of the amortisation and depreciation on the new television network acquired at the end of 2005 and the investments made in the financial year for the development of the infrastructures and the completion of the digital network.
The Parent Company’s share of the Net Result was -54.9 million euro (860.9 million euro in the first half of 2005, as a result of the sale of the Virgilio and Tin.it, and the Buffetti Group).
58.6 million euro wasinvestedin the1sthalf-yearof 2006(21.9 million in the 1sthalf-yearof 2005). In particular about 43 million euro was invested in terrestrial digital and about15 million in Free to Air television.
Net financial indebtednessat 30 June 2006 was41.9 million euro compared to netfinancialavailabilityof 436.1 million euro at 31 December 2005. The trend in the half-year was characterisedby the payment of dividends totalling 550.6 million, investment needs andtheoperational management (120 million), an improvementof thefinancialpositionarising from the sale of Buffetti (65.8 million) and the receipt from Telecom Italia of 126.8 million being tax credits arising from the Parent Company opting for the National Tax Consolidation.
Results of the Business Units for the first half of 2006
Television Free to Air
The financial results for the first six months of 2006 show an improvement in the Television Free to Air revenues which reached85.4 million euro (+10.1% with respect to the first half of 2005), led by the strong growth in domestic advertising, which grew much faster than others in the market (+1% in the first five months of the year, source Nielsen). In particular:
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The LA7 revenuesof 45.6 million euro show an increaseof16.9% with respect to the first half of 2005 (39.0 million euro), thanks to the excellent performance of grossdomestic advertising that grew by15.2%.The positive commercial result allowed an increase in the profitability for the period, registering an improvement, in like-for-like terms, in both the EBITDA (+2.2 million euro with a change of+11.6% compared to the first half of 2005) and EBIT(+1.3 million).
La7achieved important resultsin audiences,which in the firstsixmonths of 2006 reached3.0% of the dailyAudience Share, anincrease of 15%with respect to thesameperiod of 2005.
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MTV consolidated its positionthanksto thegrowthof 4.6%indomestic advertising led by the developmentof thenewplatforms, revenues from whichwere 9.9 million euro (against 6.5 million in the first half of 2005), and maintainstheoperational profitability (EBITDA) in line with the sameperiod of the previous financial year.
DTT Television
The first half of 2006 shows a significant growth in revenues that reached8.6 million euro (primarily generated by the sale of pay-per view events and smart cards) with respect to 2.2 million euro in the similar period of 2005. As far as concerns the profitability trend, against the improvement in margins for pay-per view, which still remain negative, an increase of the operating costs was recorded linked to the start-up of the new “free” channels (e.g. LA7 Sport) for which advertising collection is in the development phase and is strictly related to the penetration of the decoders.
News
The Business “News” Area (APCOM Press Agency) achieved revenues of4.5 million euro in the first six months of 2006, up by66.7%with respect to the first half of 2005, thanks to the contribution of new services (Notiziario Nuova Europa and news services for mobile telephony) and the signing of new contracts.
Telecom Italia
Media Relations
Telecom Italia Media Corporate Press Office
+39.06.3688.2610
www.telecomitalia.it/stampa
Investor Relations
+39.06.5150.5424
www.investor.telecomitaliamedia.it
investor.relations@telecomitaliamedia.it
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the United States Private Securities Litigation Reform Act of 1995. The U.S. Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This Form 6-K contains certain forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a number of factors.
Forward-looking statements involve inherent risks and uncertainties. We caution that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. These factors include, but are not limited to, the following:
- - Telecom Italia Media's ability to make any profits from its business for the next two years at least;
- - Telecom Italia Media's ability to achieve cost reduction targets in the time frame established or to continue the process of rationalization of its non-core business and the disposition of interests in certain non-core assets;
- - Telecom Italia Media's ability to implement successfully its strategic plan including, its Internet strategy, asset disposals, greater integration with Telecom Italia's other businesses and synergies arising there from;
- - the continuing impact of increased competition, including the entry of new competitors;
- - the impact of regulatory decisions and changes in the regulatory environment in Italy and elsewhere in Europe; and
- - the continuing impact of rapid changes in technologies.
The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Telecom Italia Media does not undertake an obligation to release publicly the result of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof, including, without limitation, changes in our business or acquisition strategy or planned capital expenditures, or to reflect the occurrence of unanticipated events.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: September 6th, 2006 TELECOM ITALIA MEDIA S.P.A. (Registrant) BY: /s/ Paolo Serra --------------------------- Paolo Serra Chief Financial Officer