Results

Revenues in 2010 amounted to €73,377 million, up €9,015 million or 14.0% compared with 2009. The increase is essentially attributable to higher revenues from the sale and transport of electricity by the Iberia and Latin America Division, which benefited from the change in the method used to consolidate Endesa (from proportionate to full line-by-line) after the acquisition of an additional 25.01% of the Spanish company, and by the International Division, in particular from electricity generation and sales in Russia.
These positive factors were only partially offset by a decline in revenues from the sale of electricity on the Italian market, mainly attributable to a decrease in volumes sold, as well as lower gains on the disposal of assets, which in 2009 had largely regarded Enel Linee Alta Tensione and SeverEnergia and in 2010 comprised the electricity transmission and gas transport networks in Spain.

The gross operating margin came to €17,480 million, an increase of €1,109 million or 6.8%. The rise essentially reflects the change in the method used to consolidate Endesa, and the improvement in the margin on the sale and transport of electricity in the Iberian market. The increase was partly offset by the fall in the margin on domestic markets and the decline in capital gains.

Operating income amounted to €11,258 million, up 2.0% compared with 2009 (€11,032 million).

Group net income amounted to €4,390 million in 2010, compared with €5,586 million the previous year (a decline of 21.4%). More specifically, the positive performance of operations was more than offset by an increase in net financial expense due to the change in the method used to consolidate Endesa and the decline in financial income, which in 2009 had been increased by the income (€970 million) from the early exercise of the put option granted by Enel to Acciona on 25.01% of Endesa shares.