19 Revenue

The breakdown of revenue for the first semester of 2016, with an amount of €1,861 million (€1,959 million in the first semester of 2015), is shown in the following table:

The reasons for the most significant changes are described in the “Financial review and other information” section of the Interim Directors’ Report.

Core business revenue of €1,827 million mainly consists of revenue from transportation (€952 million), distribution (€639 million)¹², natural gas storage (€220 million) and LNG regasification (€9 million) segments.

The Group generates all of its revenue exclusively in Italy. An analysis of revenue by business segment can be found in Note 26 - “Information by business segment”.

Core business revenue is reported net of the following items involving tariff components, in addition to the tariff, applied to cover gas system expenses of a general nature. The amounts received from Snam are paid in full to the Energy and Environmental Services Fund (CSEA).

Other revenue and income

Other revenue and income, with an amount up to €34 million (€73 million in the first semester of 2015), can be analysed as follows:

Other income (€11 million) mainly due to revenue from Authority repayments, connected to the achievement of quality and technical standards and to miscellaneous management compensations related to the distribution service (€6 million) and income from leases (€3 million).

Snam’s business is not affected by seasonal factors which would have a significant impact on its annual or interim economic-financial results.