Telecom Italia Media’s chief executive Antonio Campo dall’Orto has warned that the Italian government’s decision to delay analogue switch off from 2008 to 2012 had led the group to “re-think its DTT strategy.” Already the depreciation of the existing DTT network, purchased in 2005 and upgraded over the last year at a cost of over €40 million, has impacted on profitability.
On the plus side the DTT pay-per-view service has increased sales and increased margins. TI Media intends to expand its IPTV and mobile TV operations and is looking for the division’s free-to-air and multimedia operations to breakeven in 2008. There are plans to acquire TV rights and to develop thematic channels.
Telecom Italia itself is back in the red after 2006 revenues failed to compensate from the one off gains of 2005. The company lost €101.1 million compared to the €800.9 million profit recorded 12 months earlier. (JC)
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