Services and Other

Performance

Millions of euro

   
 

2019

2018

Change

Revenue and other income (net of eliminations)

2,229

2,140

89

4.2%

Gross operating margin

(18)

(116)

98

84.5%

Operating income

(246)

(251)

5

2.0%

Capital expenditure

179

142

37

26.1%

The tables below show performance by geographic area in 2019.

Revenue

Millions of euro

   
 

2019

2018

Change

Italy

1,359

1,389

(30)

-2.2%

Iberia

597

514

83

16.1%

Latin America

27

35

(8)

-22.9%

Europe and Euro-Mediterranean Affairs

28

22

6

27.3%

Other

291

231

60

26.0%

Eliminations and adjustments

(73)

(51)

(22)

-43.1%

Total

2,229

2,140

89

4.2%

Gross operating margin

Millions of euro

   
 

2019

2018

Change

Italy

169

119

50

42.0%

Iberia

66

80

(14)

-17.5%

Latin America

(123)

(104)

(19)

-18.3%

Europe and Euro-Mediterranean Affairs

5

1

4

-

Other

(135)

(212)

77

36.3%

Total

(18)

(116)

98

-84.5%

The increase in gross operating margin for 2019 is due to:

  • an increase of €50 million in the margin in Italy, the result mainly of a reduction in costs for leases and rents due to application of IFRS 16 and their consequent inclusion in the value of right-of-use assets;
  • an increase in the margin on the “Other” segment related to the increase in services provided by the holding company to the other Business Lines of the Group and to a decrease in costs for reversal of the provision related to the closing of an Enel SpA arbitration in Romania (€13 million).

Operating income

Millions of euro

   
 

2019

2018

Change

Italy

17

39

(22)

-56.4%

Iberia

19

39

(20)

-51.3%

Latin America

(122)

(105)

(17)

-16.2%

Europe and Euro-Mediterranean Affairs

3

-

3

-

Other

(163)

(224)

61

27.2%

Total

(246)

(251)

5

-2.0%

The operating loss in 2019 improved by €5 million, after an increase in depreciation, amortization and impairment losses of €93 million, which mainly reflected the depreciation of right-of-use assets following application of the new IFRS 16.

Capital expenditure

Millions of euro

   
 

2019

2018

Change

Italy

78

68

10

14.7%

Iberia

46

28

18

64.3%

Latin America

9

9

-

-

Europe and Euro-Mediterranean Affairs

1

1

-

-

Other

45

36

9

25.0%

Total

179

142

37

26.1%

The increase in capital expenditure in 2019 can be attributed to increases in Italy and Spain.