Tiscali 2001 Annual Report Download - page 19

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11
Proof that we have achieved our ambitious objective can be seen in the value of the
synergies created. In the fourth quarter 2000, proforma consolidated operating losses,
including all the Companies acquired by Tiscali, totalled approximately EUR 192.4mn. In
the fourth quarter 2001, following integration, the Group was close to breakeven; slashing
its losses by 96% to only EUR 7mn. One of the main reasons for this was the big
improvement in the EBITDA margin. This rose from 4% to 40% in only 12 months and,
shows that it is possible to develop a successful business case in this fledgling market.
I would also like to stress how, during these extraordinary acquisitions and integration,
the Company has continued to work on laying solid foundations for future development.
Specifically, 2001 saw the completion of network infrastructure aimed at improving the
quality of services offered and widening their range as well as, the signing of numerous
content distribution agreements. A restructuring process was also initiated to rationalise
the Group.
For this reason, we look forward with a great deal of confidence to 2002. Thanks to our
solid business model, balanced financial structure, high level of know-how and
exceptional staff, we are ready to face the challenge of the market on an equal footing with
our competitors.
In 2001 we concentrated on consolidation and integration. Whilst this year, we will be
putting our efforts into growth and profitability. For 2002 we aim to consolidate our
leadership position in the European Internet market, focusing particularly on the quality
and variety of services offered. This will be achieved by ongoing development of ideas, and
by following the principles which guided us previously — acting, thinking and working like
a European Company.
Renato Soru