Dear Madam/Sir,

Please find attached the Telecom Italia Group press release on 2Q'16 Results, the related File with Financial Data and Key Performance Indicators.

We also provide you with a set of bullet points summarizing business and financial highlights aiming at providing a snapshot comment on TI results.

TOTAL DOMESTIC REVENUES:

Solid Performance in 2Q'16, showing the Best Quarterly YoY Domestic Performance Since 2009:

Organic Domestic Revenues: 2Q'16 -1.1% YoY (1H'16 -1.7% YoY)
Organic EBITDA: 2Q'16 +6.9% YoY (1H'16 +0.9% YoY)
FY'16 Domestic EBITDA Guidance increased to Positive Low-Single Digit Growth.
Cost program fully on track with strong improvement in efficiency and profitability without impact on commercial and industrial levers

DOMESTIC MOBILE:

Another good quarter on mobile both on Total and on Service Revenues, as LTE penetration on total MBB base at ~49% (+24pp YoY). 4G Outdoor Population Coverage at +94% (+11pp YoY) .

Mobile Service Revenues growth confirmed (2Q'16 +0.7% YoY), despite the postponement of TIM Prime

ARPU up to 12.1€/month in 2Q'16 (+1.5% YoY), also improving from 11.6€ in 1Q'16
Positive performance of Total Revenues in 2Q'16: +2% YoY
Mobile BB users growing: +127k in 2Q'16, now at 11.8 mln users. LTE users increased by +787k QoQ in 2Q'16 (+563k in 1Q'16), now at 5.7 mln users.

DOMESTIC FIXED:

Resilient Top Line Performance (2Q: -4.1% YoY) broadlly in line with previous quarter (1Q: -3.9% YoY)
Lower Line Losses at 134K in 2Q (1Q: -134K), best performance since 2010
Fiber keeps its traction with +118k fiber lines, covering 51% of the households and with 1mln NGN customers (retail + wholesale)
BB ARPU steadly increasing due to an improved spread of flat and fiber offers: 21.9 €/month in 2Q'16 (+4.4% YoY).

DOMESTIC EBITDA:

Cost Cutting Plan launched in April gained already strong momentum, with no adverse impact on Revenues

Record Organic EBITDA up +6.9% YoY in 2Q'16.
1Q'16 negative performance totally offset: Organic EBITDA +0.9% YoY in 1H'16, with EBITDA margin at 45%
Reported EBITDA: +39.4% YoY in 2Q'16 (+11.9% in 1H'16)

The following chart shows a reconciliation table between Domestic Reported and Organic EBITDA:

		2015			2016			∆ % YoY
	10	IIQ	I Half	Ю	ШQ	IH 2016	IQ	IЮ	I Half
EBITDA Organic MIn€	1.612	1.627	3.239	1.528	1.739	3.267	$-5.2%$	6.9%	0.9%
Exchange Rate Impact		$\left(1\right)$	0	0	0	0
Labour Costs	0	24	24	65		67
Other Costs & Charges		368	369		14	16
Non Recurring Items		391	393	67	16	83
EBITDA Reported MIn€	1.610	1.236	2.846	1.461	1.723	3.184		$-9.3\%$ 39.4%	11.9%

DOMESTIC CAPEX:

Continued Growth on Innovative Capex at 777 mln € (+ 184 € mln YoY in 2Q'16), driven by a faster pace in core NGN & LTE components and additional Capex in Cloud services.
Confirmed the Strong focus on Infrastructure: Network and IT Capex represent 77% of total Innovative Capex and 83% of total Traditional Capex, respectively.

BRAZIL:

Financial Highlights

Total Revenues Improving Performance with lower decline QoQ (2Q: -12.4% YoY vs 1Q: - 15.3%), driven by early signs of macro improvements and better KPI trends;
Equipment Revenues still declining double-digit (2Q: -56.1% YoY vs 1Q: -61.1% YoY), reflecting the recent commercial shift from volume to value;
Early signs of improvement in Service Revenue trend (2Q: -5.9% YoY vs 1Q -8.3% YoY) with a lower decline in Mobile Service (2Q: -6.5% vs 1Q: -9.1% YoY(*) - YoY Growth percentages do not include revision related to prepaid revenues in 2015 ), and confirming the positive growth in Fixed Services (2Q: +14.3% YoY);
EBITDA trend improving also supported by Efficiencies (Organic 2Q: -6.7% YoY vs 1Q - 15.0% YoY; Reported 2Q: -6.8% YoY vs 1Q -17.4% YoY). Organic EBITDA margin increase to 31.2% in 2Q'16 (+1.9pp vs. 29.3% in 2Q'15).
Total Capex decreasing (-17.7% YoY in 2Q'16) as a combination of better negotiations with vendors and optimisation of some projects. Capex reached 25.5% on revenues in 2Q (-1.6pp YoY).

(*) YoY Growth percentages do not include revision related to prepaid revenues in 2015.

Operational Highlights

Widening the gap in 4G coverage: 579 cities, more than 2x second player.
4G Network evolving fast: 64% of urban population covered with 4G.
3G coverage expanded to 1,963 cities in 2Q'16 or 82.8% of urban population.
Mobile ARPU stood at R\$17.2/month in 2Q16, up 7.0% YoY, as a confirmation of the positive impacts coming from the new offer portfolio.

GROUP NET DEBT:

Net Financial Position stood at 27.514 bln € in 2Q'16 (+0.376 bln € vs 1Q'16), mainly due to exchange rate effect, no cash impact related to IAS 17 (lease-back) and dividend distribution

2Q'16 Financial and operating data

Index click on the links below Disclaimer P&L Group FY P&L Group Q Key Financial data by BU FY Key Financial data by BU quarter Net Debt & Cashflow Balance Sheet Domestic Business Results Domestic Wireline Results TIM Brasil Results Website link: Rep&Org Telecom Italia Group

TELECOM ITALIA INVESTOR RELATIONS

Domestic Mobile Results [email protected]

Telecom Italia Investor Relations

Disclaimer

The financial and operating data have been extracted or derived, with the exception of some data, from the Half-year Condensed Consolidated Financial Statements as of and for the six months ended 30 June 2016 which have been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the European Union (designated as IFRS).

The accounting policies adopted in the preparation of the Half-year Condensed Consolidated Financial Statements as of and for the six months ended 30 June 2016 have been applied on a basis consistent with those adopted in the Annual Consolidated Financial Statements at 31 December 2015, to which reference can be made, except for the new standards and interpretations adopted by the Telecom Italia Group starting from 1 January 2016 which had no effects on the Half-year Condensed Consolidated Financial Statements as of and for the six months ended 30 June 2016.

Within the Brazil Business Unit, Tim Brasil's Management recently identified that incorrect accounting entries were made in prior years in connection with the recognition of service revenue from the sale of prepaid traffic. Such incorrect accounting entries, resulted in the early recognition of revenues and consequently the underestimation of deferred revenue liabilities for prepaid traffic not yet consumed. The incorrect accounting entries did not have any impact either in terms of net financial position nor on cash and cash equivalents.

In light of the above, the comparative financial information as of 31 December 2015 and for the six-month period ended 30 June 2015 have been revised, segment information included.

Starting from 1 January 2016, as a result of the change in the operational mission of Persidera, the Media Business Unit was included in the Domestic Business Unit, while for prior periods under comparison it was reclassified under Other activities & Eliminations.

Furthermore, the Sofora - Telecom Argentina group, which was disposed of on 8 March 2016, is classified as Discontinued operations.

P&L Group
	Revised			UNAUDITED FIGURES
€ mln	1Q15	1H15	1Q16	1H16
REVENUES	5,054	10,101	4,440	9,096
Other Income	53	131	47	107
TOTAL OPERATING REVENUES AND OTHER INCOME	5,107	10,232	4,487	9,203
Acquisition of goods and services	(2,171)	(4,372)	(1,923)	(3,783)
Employee benefits expenses	(833)	(1,705)	(848)	(1,551)
Other operating expenses	(265)	(888)	(247)	(501)
Internally generated assests and Others	195	372	243	358
EBITDA	2,033	3,639	1,712	3,726
EBITDA Margin	40.2%	36.0%	38.6%	41.0%
Depreciation and amortization	(1,052)	(2,130)	(1,009)	(2,047)
Impairment reversals (losses) on non-current assets		279	(2)	(5)
Gains (losses) on disposals of non-current assets			3	13
EBIT	981	1,788	704	1,687
EBIT Margin	19.4%	17.7%	15.9%	18.5%
Income (loss) equity invest. valued equity method	2	4		5
Net Financial Income / (Expenses)	(817)	(1,482)	(26)	(145)
Profit (loss) before tax from continuing operations	166	310	678	1,547
Income tax expense	(74)	(195)	(221)	(489)
Profit (loss) from continuing operations	92	115	457	1,058
Profit (loss) from Discontinued operations/Non-current assets held for sale	169	330	47	47
Prifit (loss) for the year	261	445	504	1,105
Attributable to:
Owners of the Parent	82	33	433	1,018
Non-controlling interests	179	412	71	87

	Revised	UNAUDITED FIGURES
REVENUES (€ mln)	1Q15	1H15	1Q16	1H16
Domestic	3,631	7,375	3,548	7,247
o/w Wireline Domestic	2,657	5,345	2,553	5,131
o/w Mobile Domestic	1,151	2,387	1,186	2,447
Brasile	1,412	2,691	897	1,858
Other activities & Elim.	11	35	(5)	(9)
TI Group	5,054	10,101	4,440	9,096
EBITDA Reported (€ mln)
Domestic	1,610	2,846	1,461	3,184
Brasile	416	790	258	556
Other activities & Elim.	7	3	(7)	(14)
TI Group	2,033	3,639	1,712	3,726
EBITDA Margin Reported
Domestic	44.3%	38.6%	41.2%	43.9%
Brasile	29.5%	29.4%	28.8%	29.9%
TI Group	40.2%	36.0%	38.6%	41.0%
EBIT Reported (€ mln)
Domestic	814	1,222	662	1,581
Brasile	165	574	49	121
Other activities & Elim.	2	-8	(7)	(15)
TI Group	981	1,788	704	1,687
EBIT Margin Reported
Domestic	22.4%	16.6%	18.7%	21.8%
Brasile	11.7%	21.3%	5.5%	6.5%
TI Group	19.4%	17.7%	15.9%	18.5%
CAPEX (€ mln)
Domestic	676	1,506	778	1,575
Brasile	287	637	166	408
Elim & Adj	1	3	0	0
TI Group	964	2,146	944	1,983
CAPEX ON SALES (%)
Domestic	18.6%	20.4%	21.9%	21.7%
Brasile	20.3%	23.7%	18.5%	22.0%
TI Group	19.1%	21.2%	21.3%	21.8%

	Revised			UNAUDITED FIGURES
REVENUES (€ mln)	1Q15	2Q15	1Q16	2Q16
Domestic	3,631	3,744	3,548	3,699
o/w Wireline Domestic	2,657	2,688	2,553	2,578
o/w Mobile Domestic	1,151	1,236	1,186	1,261
Brasile	1,412	1,279	897	961
Other activities & Elim.	11	24	(5)	(4)
TI Group	5,054	5,047	4,440	4,656
EBITDA Reported (€ mln)
Domestic	1,610	1,236	1,461	1,723
Brasile	416	374	258	298
Other activities & Elim.	7	(4)	(7)	(7)
TI Group	2,033	1,606	1,712	2,014
EBITDA Margin Reported
Domestic	44.3%	33.0%	41.2%	46.6%
Brasile	29.5%	29.2%	28.8%	31.0%
TI Group	40.2%	31.8%	38.6%	43.3%
EBIT Reported (€ mln)
Domestic	814	408	662	919
Brasile	165	409	49	72
Other activities & Elim.	2	(10)	(7)	(8)
TI Group	981	807	704	983
EBIT Margin Reported
Domestic	22.4%	10.9%	18.7%	24.8%
Brasile	11.7%	32.0%	5.5%	7.5%
TI Group	19.4%	16.0%	15.9%	21.1%
CAPEX (€ mln)
Domestic	676	830	778	797
Brasile	287	350	166	242
Elim & Adj	1	2	0
TI Group	964	1,182	944	1,039
CAPEX ON SALES (%)
Domestic	18.6%	22.2%	21.9%	21.5%
Brasile	20.3%	27.4%	18.5%	25.2%
TI Group	19.1%	23.4%	21.3%	22.3%

Net Cash Flow & Net Debt Dynamics	Revised			UNAUDITED FIGURES
	1Q15	1H15	1Q16	1H16
(€ mln)
EBITDA	2,033	3,639	1,712	3,726
CAPEX	(964)	(2,146)	(944)	(1,983)
Change in net operating working capital:	(1,502)	(1,124)	(750)	(1,078)
Change in inventories	(40)	(54)	(87)	(40)
Change in trade receivables and net amounts due from customers on construction contracts	(345)	(128)	30	(130)
Change in trade payables (*)	(979)	(912)	(566)	(635)
Other changes in operating receivables/payables	(138)	(30)	(127)	(273)
Change in provisions for employee benefits	(6)	19	59	40
Change in operating provisions and Other changes	(16)	313	(52)	(34)
Net operating Free Cash Flow	(455)	701	25	671

Sale of investments and other disposals flow Share capital increases/reimbursements, including incidental costs	3 186	1,379 186	707	732
Financial investments flow		(24)	(9)	(9)
Dividends payment	(3)	(204)		(227)
Change in finance lease contracts		(984)	(46)	(123)
Finance expenses, income taxes and other net non-operating requirements flow	(486)	(1,217)	(500)	(1,242)
Reduction/(Increase) in adjusted net financial debt from continuing operations	(755)	(163)	177	(198)
Reduction/(Increase) in net financial debt from Discontinued operations/Non-current assets held for sale	(24)	(178)	(38)	(38)
Reduction/(Increase) in adjusted net financial debt	(779)	(341)	139	(236)
OPENING NET FINANCIAL DEBT (Adjusted)	26,651	26,651	27,278	27,278
Net cash flow	(779)	(341)	139	(236)
ENDING NET FINANCIAL DEBT (Adjusted)	27,430	26,992	27,139	27,514

Adj for fair value valuation of derivatives and related underlyings	1,573	1,366	1,094	556

Consolidated Balance Sheet

	Revised		UNAUDITED FIGURES
€ mln	FY15	1Q16	1H16
ASSETS
NON-CURRENT ASSETS
Intangible assets
Goodwill	29,383	29,436	29,566
Intangible assets with a finite useful life	6,480	6,516	6,777
	35,863	35,952	36,343
Tangible assets Property, plant and equipment owned	12,659	12,816	13,211
Assets held under finance leases	2,208	2,210	2,298
	14,867	15,026	15,509
Other non-current assets
Investments in associates and joint ventures accounted for using the equity method	41	41	39
Other investments	45	41	38
Securities, financial receivables and other non-current financial assets	2,989	2,766	3,129
Miscellaneous receivables and other non-current assets	1,778	1,899	2,048
Deferred tax assets	853	894	735
	5,706	5,641	5,989

TOTAL NON-CURRENT ASSETS (A)	56,436	56,619	57,841
CURRENT ASSETS
Inventories	254	341	294
Trade and miscellaneous receivables and other current assets	5,112	5,534	5,683
Current income tax receivables	163	26	69
Other investments Securities other than investments, financial receivables and other current financial assets	1,840	1,130	1,330
Cash and cash equivalents	3,559	2,665	2,707
Current assets sub-total	10,928	9,696	10,083

Discontinued operations/assets held for sale
of a financial nature	227	-	-
of a non-financial nature	3,677 3,904	- -	- -

TOTAL CURRENT ASSETS (B)	14,832	9,696	10,083


TOTAL ASSETS (A+B)	71,268	66,315	67,924

EQUITY AND LIABILITIES
EQUITY
Equity attributable to equity holders of the Parent	17,554	18,181	19,106
Equity attributable to Minority Interests	3,695	2,035	2,221
TOTAL EQUITY (C)	21,249	20,216	21,327
NON-CURRENT LIABILITIES
Non-current financial liabilities	30,518	30,354	31,027
Employee benefits	1,420	1,459	1,580
Deferred tax liabilities	323	367	434
Provisions	551	551	569
Miscellaneous payables and other non-current liabilities	1,110	1,140	1,207
TOTAL NON-CURRENT LIABILITIES (D)	33,922	33,871	34,817

CURRENT LIABILITIES
Current financial liabilities	6,224	4,440	4,209
Trade and miscellaneous payables and other current liabilities	7,882	7,701	7,445
Current income tax payables	110	87	126
Current liabilities sub-total (E)	14,216	12,228	11,780

Liabilities directly associated with Discontinued operations/Non-current assets held for sale
of a financial nature	348	-	-
of a non-financial nature	1,533	-	-
	1,881	-	-
TOTAL CURRENT LIABILITIES (E)	16,097	12,228	11,780

TOTAL LIABILITIES (F=D+E)	50,019	46,099	46,597

TOTAL EQUITY AND LIABILITIES (C+F)	71,268	66,315	67,924

	Domestic Business Results - Reported Figures
													UNAUDITED FIGURES
	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy	4Q15	Δ% yoy	FY15	Δ% yoy	1Q16	Δ% yoy	2Q16	Δ% yoy
KPI's ('000)
Wireline
Physical accesses	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%	11,742	-5.9%	11,742	-5.9%	11,602	-5.5%	11,468	-5.1%
Broadband (retail+wholesale)	8,784	0.3%	8,821	0.7%	8,839	1.1%	8,890	1.6%	8,890	1.6%	8,955	1.9%	8,992	1.9%
Mobile
Total lines	30,140	-2.8%	30,075	-1.9%	30,023	-1.2%	30,007	-1.1%	30,007	-1.1%	29,846	-1.0%	29,742	-1.1%
€ mln	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy	4Q15	Δ% yoy	FY15	Δ% yoy	1Q16	Δ% yoy	2Q16	Δ% yoy
REVENUES	3,631	-2.6%	3,744	-1.6%	3,752	-1.4%	3,874	-2.3%	15,001	-2.0%	3,548	-2.3%	3,699	-1.2%
o/w Services	3,435	-3.3%	3,505	-1.7%	3,539	-1.5%	3,578	-1.1%	14,058	-1.9%	3,352	-2.4%	3,468	-1.1%
o/w Equipments	196	12.3%	239	1.3%	213	0.7%	296	-15.0%	943	-2.7%	196	0.1%	231	-3.4%
o/w Domestic Mobile Services	1,053	-4.2%	1,109	-2.5%	1,170	-1.5%	1,184	0.1%	4,517	-2.0%	1,059	0.6%	1,117	0.7%
o/w Traditional	621	-12.9%	622	-14.3%	639	-12.1%	621	-10.6%	2,503	-12.5%	573	-7.7%	580	-6.9%
o/w Innovative	375	14.4%	416	21.8%	453	16.0%	484	19.9%	1,728	18.1%	438	16.8%	466	12.0%
o/w Wholesale	57	-1.6%	71	2.1%	79	10.0%	78	-6.2%	286	0.9%	48	-15.8%	72	1.1%
o/w Domestic Wireline Services	2,595	-4.4%	2,614	-1.9%	2,592	-1.8%	2,572	-3.1%	10,372	-2.8%	2,483	-4.3%	2,488	-4.8%
o/w Traditional Services	2,595	-8.4%	1,185	-6.2%	1,151	-6.3%	1,109	-9.6%	4,638	-7.6%	1,064	-10.8%	1,053	-11.1%
o/w Innovative Services	2,595	4.6%	583	7.8%	577	4.9%	596	3.8%	2,314	5.2%	590	5.8%	610	4.6%
o/w Domestic Wholesale	2,595	-7.7%	549	-6.4%	550	-5.6%	546	1.2%	2,205	-4.8%	537	-4.1%	506	-7.8%
o/wTIS Group	2,595	3.0%	325	8.3%	336	10.5%	343	1.2%	1,314	5.6%	311	0.3%	338	4.0%
o/w Subs. Adj. and Other	2,595	12.2%	-28	-3.3%	-23	15.8%	-23	7.6%	-99	8.2%	-19	24.7%	-19	32.4%
Elimination & Other	2,595	18.0%	-218	6.8%	-223	4.8%	-177	18.9%	-831	12.2%	-190	10.9%	-137	37.1%
EBITDA	1,610	-10.2%	1,236	-27.7%	1,679	-6.5%	1,042	-38.8%	5,567	-20.4%	1,461	-9.3%	1,723	39.4%
EBITDA Margin	44.3%		33.0%		44.7%		26.9%		37.1%		41.2%		46.6%
Capex	676	37.1%	830	21.3%	791	28.6%	1,603	61.8%	3,900	40.1%	778	15.1%	797	-4.0%
% on revenues	18.6%		22.2%		21.1%		41.4%		26.0%		21.9%		21.5%
Headcount at period-end ('000)	52,965	-0.6%	52,825	-0.7%	52,726	-1.0%	52,644	-0.8%	52,644	-0.8%	52,713	-0.5%	52,622	-0.4%

Domestic Wireline Results - Reported Figures

	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy	4Q15	Δ% yoy	FY15	Δ% yoy	1Q16	Δ% yoy	2Q16	Δ% yoy
KPI's
Physical accesses ('000)	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%	11,742	-5.9%	11,742	-5.9%	11,602	-5.5%	11,468	-5.1%
OLO Access (on TI infrastructure)	7,297	1.2%	7,375	1.6%	7,392	3.1%	7,467	3.4%	7,467	3.4%	7,543	3.4%	7,606	3.1%
o/w ULL	5,460	1.2%	5,511	0.9%	5,517	2.9%	5,573	3.1%	5,573	3.1%	5,632	3.2%	5,680	3.1%
o/w Virtual ULL	26	-6.5%	27	1.4%	29	16.7%	28	17.4%	28	17.4%	29	12.2%	28	2.7%
o/w Wholesale Line Rental	565	-14.4%	547	-13.7%	523	-14.1%	497	-15.4%	497	-15.4%	470	-16.9%	443	-19.1%
o/w Naked	1,207	7.3%	1,213	7.5%	1,218	5.4%	1,230	3.8%	1,230	3.8%	1,241	2.9%	1,256	3.5%
o/w NGN	39	-	76	-	105	-	139	-	139	-	170	-	199	-

TI Retail Broadband Accesses ('000)	6,945	0.2%	6,971	0.5%	6,984	0.7%	7,023	1.5%	7,023	1.5%	7,067	1.8%	7,088	1.7%
o/w Business	1,544	0.0%	1,522	-1.5%	1,505	-3.1%	1,488	-4.1%	1,488	-4.1%	1,480	-4.2%	1,472	-3.3%
o/w Consumer	5,401	0.2%	5,450	1.0%	5,479	1.8%	5,535	3.1%	5,535	3.1%	5,588	3.5%	5,616	3.1%
o/w NGN	290	-	374	-	435	-	538	-	538	-	672	-	790	-
% flat offers on TI total portfolio (Consumer+Business)	92%	1.8pp	93%	1.9pp	93%	1.9pp	94%	1.9pp	94%	1.9pp	94%	1.8pp	94%	1.5pp
BroadBand Accesses Wholesale ('000)	1,839	0.6%	1,850	1.7%	1,855	2.4%	1,867	2.1%	1,867	2.1%	1,888	2.6%	1,903	2.9%
BB Arpu (euro/mese)	20.4	6.0%	20.9	6.7%	20.7	3.7%	21.2	4.9%	20.8	5.3%	21.5	5.2%	21.9	4.4%
REVENUES(€ mln)	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy	4Q15	Δ% yoy	FY15	Δ% yoy	1Q16	Δ% yoy	2Q16	Δ% yoy
TOTAL	2,657	-4.1%	2,688	-1.8%	2,645	-2.7%	2,664	-3.9%	10,654	-3.1%	2,553	-3.9%	2,578	-4.1%
o/w Services	2,595	-4.4%	2,614	-1.9%	2,592	-1.8%	2,572	-3.1%	10,372	-2.8%	2,483	-4.3%	2,488	-4.8%
o/w Equipments	62	9.1%	74	1.4%	53	-32.5%	92	-21.7%	282	-13.8%	70	13.8%	90	20.7%
TRADITIONAL SERVICES	1,193	-8.4%	1,185	-6.2%	1,151	-6.3%	1,109	-9.6%	4,638	-7.6%	1,064	-10.8%	1,053	-11.1%
o/w Voice	1,038	-7.6%	1,015	-7.1%	978	-7.3%	944	-11.9%	3,975	-8.5%	901	-13.2%	874	-13.9%
o/w Traffic	353	-6.3%	359	-1.9%	348	1.6%	339	-9.5%	1,399	-4.1%	324	-8.4%	323	-10.1%
o/w Access	612	-8.0%	586	-9.3%	562	-10.9%	539	-13.0%	2,299	-10.3%	515	-15.9%	489	-16.6%
o/w Voice VAS	30	-6.7%	29	-12.9%	28	-18.0%	27	-17.1%	115	-13.7%	26	-15.4%	27	-5.9%
o/w Rental & other	43	-12.1%	41	-14.3%	40	-16.0%	38	-13.2%	161	-13.9%	37	-13.7%	35	-14.0%
o/w Business Data & Others trad	155	-13.9%	170	-0.5%	173	-0.3%	165	6.9%	663	-2.3%	163	5.3%	179	5.7%
o/w Data Services	118	-6.8%	120	-4.3%	110	-9.8%	117	-4.9%	465	-6.4%	112	-4.8%	113	-5.8%
o/w Rental & other	37	-30.4%	50	10.0%	63	22.3%	48	53.1%	198	9.0%	51	37.3%	67	33.4%
INNOVATIVE SERVICES	558	4.6%	583	7.8%	577	4.9%	596	3.8%	2,314	5.2%	590	5.8%	610	4.6%
o/w Broadband	418	5.7%	430	6.8%	427	3.9%	437	5.8%	1,712	5.5%	447	6.9%	457	6.2%
o/w Access	389	6.1%	403	7.7%	399	4.7%	410	6.7%	1,600	6.3%	420	7.9%	431	7.1%
o/w Bundles Services	10	2.1%	10	-2.1%	10	0.1%	9	-5.9%	39	-1.5%	9	-5.4%	9	-5.6%
o/w Others	19	-0.8%	18	-5.0%	18	-8.8%	18	-6.6%	72	-5.4%	17	-6.4%	17	-7.6%
o/w Content	5	12.7%	5	4.8%	6	28.2%	4	-13.1%	20	7.5%	4	-17.6%	4	-21.3%
o/w ICT Service	135	1.1%	148	10.7%	145	7.1%	155	-0.9%	582	4.3%	139	3.2%	149	0.6%
Domestic Wholesale	560	-7.7%	549	-6.4%	550	-5.6%	546	1.2%	2,205	-4.8%	537	-4.1%	506	-7.8%
TIS Group	310	3.0%	325	8.3%	336	10.5%	343	1.2%	1,314	5.6%	311	0.3%	338	4.0%
Subs. Adj. and Other	-26	12.2%	-28	-3.3%	-23	15.8%	-23	7.6%	-99	8.2%	-19	24.7%	-19	32.4%

UNAUDITED FIGURES

			Domestic Mobile Results -		Reported Figures
													UNAUDITED FIGURES
	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy	4Q15	Δ% yoy	FY15	Δ% yoy	1Q16	Δ% yoy	2Q16	Δ% yoy
KPI's
Total number of lines ('000) (1)	30,140	-2.8%	30,075	-1.9%	30,023	-1.2%	30,007	-1.1%	30,007	-1.1%	29,846	-1.0%	29,742	-1.1%
Churn Rate %	6.4%	0.3pp	5.5%	-0.4pp	5.8%	-0.5pp	5.7%	-0.1pp	23.4%	-0.7pp	5.6%	-0.8pp	5.3%	-0.2pp
Total User Broadband (mln of users)	10.5	20.8%	10.8	17.5%	11.2	16.9%	11.5	14.3%	11.5	14.3%	11.6	11.1%	11.8	9.5%
Total User LTE (mln of users)	1.8	-	2.7	-	3.4	-	4.4	-	4.4	-	5.0	-	5.7	-
Volumes of traffic (mln of minutes) (2)	16,155	8.0%	16,630	6.6%	16,339	5.1%	16,998	2.7%	66,122	5.5%	16,943	4.9%	17,381	4.5%
o/w Outgoing traffic volumes (mln of minutes) (3)	10,821	4.5%	10,983	3.3%	10,711	1.9%	11,096	-0.8%	43,611	2.2%	10,999	1.6%	11,164	1.6%
o/w Incoming traffic volumes (mln of minutes)	5,335	15.7%	5,647	13.9%	5,627	11.8%	5,902	9.8%	22,512	12.7%	5,945	11.4%	6,217	10.1%
Usage Voce (min/line/month)(4)	214	13.0%	223	11.5%	220	8.9%	232	6.2%	222	9.8%	233	8.8%	241	8.2%
Usage Dati (GB/users/month)	1.3	14.3%	1.4	15.1%	1.6	18.3%	1.6	15.9%	1.5	15.9%	1.7	28.6%	1.9	36.8%
ARPU(4)	11.3	-1.3%	11.9	0.2%	12.5	-0.2%	12.8	0.8%	12.1	-0.1%	11.6	2.5%	12.1	1.5%
REVENUES (€ mln), Reported figures	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy	4Q15	Δ% yoy	FY15	Δ% yoy	1Q16	Δ% yoy	2Q16	Δ% yoy
TOTAL	1,151	-2.0%	1,236	-2.2%	1,303	1.5%	1,378	0.7%	5,068	-0.5%	1,186	3.0%	1,261	2.0%
SERVICES	1,053	-4.2%	1,109	-2.5%	1,170	-1.5%	1,184	0.1%	4,517	-2.0%	1,059	0.6%	1,117	0.7%
Traditional Services	621	-12.9%	622	-14.3%	639	-12.1%	621	-10.6%	2,503	-12.5%	573	-7.7%	580	-6.9%
o/w Outgoing voice (5)	463	-12.6%	455	-14.3%	461	-14.0%	432	-13.8%	1,810	-13.7%	404	-12.8%	403	-11.4%
o/w Incoming voice	58	12.3%	62	9.9%	65	14.4%	69	16.2%	254	13.3%	67	15.7%	70	13.4%
o/w Messaging	100	-24.2%	106	-24.0%	113	-15.6%	120	-10.6%	439	-18.6%	102	2.0%	107	0.7%
Innovative Services	375	14.4%	416	21.8%	453	16.0%	484	19.9%	1,728	18.1%	438	16.8%	466	12.0%
o/w Browsing	306	16.0%	339	20.7%	372	23.8%	392	20.5%	1,409	20.3%	356	16.3%	377	11.4%
o/w Internet Content	69	8.1%	77	27.3%	80	-10.2%	92	17.4%	319	9.0%	83	19.4%	88	14.3%
Wholesale Services	57	-1.6%	71	2.1%	79	10.0%	78	-6.2%	286	0.9%	48	-15.8%	72	1.1%
Handsets	98	29.0%	127	0.1%	133	39.3%	194	4.8%	551	14.1%	127	29.5%	144	13.7%

(2) Incoming+Outgoing Mobile Retail + Wholesale excluding Visitors

(3) Roaming volumes not included

(4) Net of visitors

(5) Outgoing voice revenues include roaming revenues

	Revised				UNAUDITED FIGURES
	1Q15	2Q15	1Q16	Δ% yoy	2Q16	Δ% yoy
KPI's - Mobile only
Estimated Total Penetration (%) (1)	139.0%	138.2%	125.4%		124.0%
Market Share on total lines(%) (1)	26.7%	26.4%	26.1%	-0.6pp	25.6%
Total Lines ('000) (1) (2)	75,749	74,600	67,269	-11.2%	63,988	-14.2%
TOTAL ARPU (3)	16.7	16.1	17.2	3.0%	17.2	7.0%
TOTAL MOU net of visitors	120	119	119	-1.4%	118	-0.4%
MAIN RESULTS (IAS/IFRS, R\$ mln)	1Q15	2Q15	1Q16	Δ% yoy	2Q16	Δ% yoy
REVENUES Reported	4,551	4,361	3,854	-15.3%	3,820	-12.4%
of which services	3,944	3,792	3,618	-8.3%	3,570	-5.9%
of which handsets	607	569	236	-61.1%	250	-56.1%
EBITDA Reported	1,341	1,276	1,107	-17.4%	1,189	-6.8%
EBITDA margin	29.5%	29.3%	28.7%	-0.8pp	31.1%	1.8pp
Capex Reported	924	1,184	710	-23.2%	975	-17.7%
% on revenues	20.3%	27.1%	18.4%	-1.9pp	25.5%	-1.6pp
	1Q15	2Q15	1Q16	Δ% yoy	2Q16	Δ% yoy
Exchange rate AVG (R\$ vs. euro)	3.22251	3.31144	4.29753		4.13001

(1) Source ANATEL; 2Q16 figures refers to MAY 2016, last data disclosed by ANATEL.

(2) 2Q16 estimate; includes company lines - the data of the periods under comparison have been appropriately restated.

(3) Gross of visitors

Revised					2Q'16 Reported & Organic Figures (*): YoY trends					UNAUDITED FIGURES
		2Q'15				2Q'16	Δ% yoy reported	Δ% yoy organic *
Reported Figures (a)			Non Organic elements (b)	Non recurring items (c)	Organic figures * (d=a+b+c)	Reported figures (e)		Non recurring items (f)	Organic figures * (g=e+f)	(h=e/a-1)	(i=g/d-1)
€ mln REVENUES		Change in consolid. area	Exchange rate impact			REVENUES
Domestic o/w Wireline Domestic o/w Mobile Domestic Brasile Other Activities & Eliminations	3,744 2,688 1,236 1,279 24		(2) (2) (180)		3,742 2,686 1,236 1,099 24	Domestic o/w Wireline Domestic o/w Mobile Domestic Brasile Other Activities & Eliminations	3,699 2,578 1,261 961 (4)		3,699 2,578 1,261 961 (4)	(1.2) (4.1) 2.0 (24.9) -	(1.1) (4.0) 2.0 (12.4) -
TI Group EBITDA Domestic	5,047 1,236		(182) (1)	392	4,865 1,627	TI Group EBITDA Domestic	4,656 1,723	16	4,656 1,739	(7.7) 39.4	(4.3) 6.9
Brasile Other Activities & Eliminations TI Group	374 (4) 1,606		(52) (53)	6 398	322 2 1,951	Brasile Other Activities & Eliminations TI Group	298 (7) 2,014	16	298 (7) 2,030	(20.3) - 25.4	(6.7) - 4.0
EBITDA Margin Domestic Brasile TI Group	33.0% 29.2% 31.8%				43.5% 29.3% 40.1%	EBITDA Margin Domestic Brasile TI Group	46.6% 31.0% 43.3%		47.0% 31.2% 43.6%	13.6 pp 1.8 pp 11.5 pp	3.5 pp 1.9 pp 3.5 pp
EBIT Domestic	408			392	800	EBIT Domestic	919	16	935	125.2	16.9
Brasile Other Activities & Eliminations TI Group	409 (10) 807		(72) (72)	(222) 6 176	115 (4) 911	Brasile Other Activities & Eliminations TI Group	72 (8) 983	(9) 1 8	63 (7) 991	(82.4) - 21.8	(44.4) (75.0) 8.8
EBIT Margin Domestic Brasile TI Group	10.9% 32.0% 16.0%				21.4% 10.4% 18.7%	EBIT Margin Domestic Brasile TI Group	24.8% 7.5% 21.1%		25.3% 6.6% 21.3%	13.9 pp -24.5 pp 5.1 pp	3.9 pp -3.8 pp 2.6 pp

2Q15	2Q16	Non recurring items on EBIT	2Q15	2Q16
30	2	Labour Costs	30	2
368	14	Other Costs & Charges	368	15
		Gain on Brazilian Tower	(222) **	(9)

		Total		8
	398	16		176

(*) Organic excluding non recurring items (**) Same exchange rate 2Q16

AI Terminal

Telecom Italia Rsp

4448_rns_2016-07-26_bdf7e294-ee22-4d3d-a991-5028f703ea53.pdf