Operating performance of the Group

The revenue booked in the first nine months of 2014 totaled € 3,088.3 million (€ 2,887.3 million on a like-for-like basis) and included € 2,695.8 million generated outside Italy.

Total consolidated revenue reports an increase of about 7% compared with the amount stated on a like-for-like basis compared to the same period of the previous year. This increase is essentially the net result of the production progress on some large-scale projects abroad which, compared to the first nine months of 2013, became fully operational (Ethiopia, Denmark, Saudi Arabia and Qatar), up against which the substantial completion of major road and highways projects in Italy and the sale to third parties – completed in the second half of the previous period – of activities related to the construction of Milan’s External East Bypass.

Please also note that, as far as the Group’s foreign industrial activities are concerned, during the first nine months of 2014 it was necessary to take into consideration both (i) the temporary slowdown in production of several large projects in Venezuela and (ii) the continuing problem issues encountered in the Panama Canal expansion project, with specific reference to the temporary deterioration of relations with the client – further information of which is provided in the subsequent parts of this Interim financial report and should be consulted for more detailed information – which also caused a reduction in the volume of production, especially with reference to the first quarter compared to that observed in the same period of last year.

Item “Other revenue” includes mainly positive components of income originated in the projects in progress and arising from ancillary industrial activities not directly attributable to the contract with the client.

Net financing costs totaled € 111.7 million (down by € 68.8 million on a like-for-like basis) where for investments there was a gain of € 4.5 million (€ 5.4 million on a like-for-like basis).

The main cause of the change in the net financing costs, in respect of the corresponding value recognized on a like-for-like basis for the first nine months of 2013, is the non-recurring charge of about € 54 million resulting from the adoption by the Group of the new official exchange rate called SICAD 2 to translate its net assets denominated in the Venezuelan currency (called Bolivar Fuerte or VEF), effective as of June 30, 2014.

This situation, details of which are provided in the notes to the condensed consolidated interim financial statements and should be consulted for more information, was necessary in light of the continuing financial/currency crisis being experienced in the country within the framework of a more reliable estimate of the value that these net financial assets will be realized, also in consideration of the regulatory characteristics of the local currency market which expresses significant limitations on movement of Venezuelan currency.

Financial expense for the period, net of income of the same nature, showed a slight increase compared to the same period last year, reclassified on a like-for-like basis. Please note that, within the adjustments made to the income statement for the first nine months of 2013, shown here on a comparative basis, no adjustments were made in relation to the indebtedness of the Group in this period in relation to the public tender offer for all ordinary shares of the former Impregilo S.p.A. and therefore, on an aggregated and consolidated basis, there are no significant differences between the two periods being compared as regards average indebtedness.