Tiscali 2003 Annual Report Download - page 128

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Intragroup revenues mainly derive from the billing of services provided centrally by the holding Company, and to a lesser extent,
to the billing of costs incurred by the parent Company on behalf of other Group companies.
Revenues from centralised services provided to Group companies are listed under item A1 on the profit and loss account, as they
consist of co-ordination and management activities carried out by the parent Company. These activities cover accounts manage-
ment, billing, data archiving and management, treasury management, provisioning, mailing, streaming and antivirus services,
general management, finance, legal and human resources functions, strategic marketing, distribution, purchasing and website
content management.
INCREASES IN ASSETS FOR WORK IN PROGRESS (INTERNAL)
The EUR 1.2 million change is attributable to the capitalisation of internal costs involved in the production of management soft-
ware to be used within the Group.
OTHER INCOME
“Other income” includes contributions received in respect of incentives provided under art. 8 of Law 388 on investment (EUR
0.2 million) and under art. 7 of Law 388 on job creation (EUR 2.1 million). It also includes EUR 0.6 million from the commu-
nications ministry in respect of contributions made by broadband users.
B) Production costs
PURCHASES OF RAW MATERIALS, SUPPLIES, CONSUMABLES AND OTHER GOODS
The increase in the item “purchase of goods” reflects the cost of purchasing ADSL modems as the broadband service took off in
2003. It also includes the cost of purchasing the necessary equipment for the projects carried out for the region of Sardinia (EUR
1.1 million).
130130
EUR/000 31.12.2003 31.12.2002 CHANGE
Personnel costs 1,174 - 1,174
1,174 - 1,174
EUR/000 31.12.2003 31.12.2002 CHANGE
Other income 2,874 8,893 (6,019)
EUR/000 31.12.2003 31.12.2002 CHANGE
Purchase of goods 2,843 1,359 1,484
Purchase of consumables 447 252 195
Purchase of advertising and promotional materials 433 456 (23)
Other purchases -1(1)
3,723 2,068 1,655