Prysmian Group

It is a world leader in optical fibre telecommunications cables and systems, as well as electric power transmission, high-voltage submarine cables and power distribution for the oil industry. Its shareholders are reaping the benefits of its enhanced profitability

Valerio Battista

Valerio Battista

In the two sectors in which it operates, Prysmian is number one and number two in the world. The top management at the Milan-based multinational with a turnover of € 7 bn have very clear ideas about how to ride the wave of the recovery as a market leader. Their short-term objective is to continue to take advantage of the momentum of submarine and telecom cables by stepping up the pace of growth in North America and the Middle East.

The group was spun off from a branch of Pirelli in 2005 and it now works in two broad areas: optical fibre telecommunications cables and systems is the first; the second is energy, including power cables, high-voltage submarine cables and hi-tech cables for the oil industry.

The company has managed to emerge relatively unscathed from one of the worst crises in the last 100 years. At the end of 2015, the upward trend in its revenues continued and there were further improvements in its profitability, so it can now look forward optimistically to 2016. The goal is to consolidate the standing that it has gained as a global leader in the businesses with the greatest value, such as submarine cables, while maintaining its exceptional standards. This will help to keep up the cash flows required to produce value for the shareholders and all of the stakeholders. The management is working on these strategic priorities as it aims to gradually improve profitability and the capital structure.

Prysmian is a little Italian miracle on a big scale that grew up as part of the Pirelli family then ventured out on its own in a Goldman Sachs private equity scheme and has since soared to great heights. It has been flying high for ten years and it is now a healthy public company whose shares are traded on the stock exchange. Those with stakes in the group have every reason to be satisfied with them: according to analysts, the stock is a firmly establi-
shed part of a medium- and long-term bull market trend. Essentially, this means that long-term investors will have plenty to smile about in the future.

Energy and information promote the development of communities, so it is crucial for them to be available at all times and provided in an efficient, effective and sustainable manner. Prysmian does just that, and in a big way. For example, cables made in Naples help to light up San Francisco, as they span more than 80 km under the waters of the bay. Prysmian also plays its part in distributing energy from offshore wind farms, power in the Amazon rainforest and the bits transmitted by the National Broadband Network (Nbn) in Australia, whose cables run all over the country. Vast amounts of data and electrons that can be found across the globe all have one thing in common: the cables manufactured by the Milan-based multinational.

Prysmian has a long history of creating value and growth, thanks in part to its many M&A deals. Consequently, its moves are always watched closely. The strategic plan put in place by the Ceo Valerio Battista looks set to bring about further growth for the business in 2016.