Tiscali 2003 Annual Report Download - page 36

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37
Investment in intangible assets totalled EUR 63.4 million and was mostly spent on purchasing software to improve service
quality and support Internet traffic growth and new user licences for acquiring capacity (IRUs).
Receivables
The increase from EUR 230.1 million in 2002 to EUR 304.0 million was due to the booking of deferred tax assets of EUR 51.6
million, and EUR 30 million relating to the application of VAT refunds, partially offset by the reduction in receivables from custo-
mers due to an improvement in payment collection.
Payables to suppliers
The increase from EUR 306.7 million to EUR 310.6 million is entirely due to higher business volumes.
Payables to others
The increase from EUR 9.8 million to EUR 30.3 million related to a deferred payment of EUR 5.6 million for the acquisition of
UK Company npower, and of EUR 2.5 million for the acquisitions of EU.net and Home.
In addition EUR 5 million related to the acquisition by Tiscali BV of the network divisions of BabyXL and BT Ignite.
Significant events taking place after the year end
ADSL users and other initiatives
At the end of March 2004, ADSL customers numbered 1,240,000, owing to growth in Tiscali’s main European markets. Tiscali
became the second largest ADSL operator in the UK ahead of Wanadoo subsidiary Freeserve, thanks to its innovative package
being well received by customers.
In particular, the Group has exceeded its targets by over 100%, with user numbers up by 50% compared to 31.12.2003.
Strong growth in ADSL customer numbers in the first two months of 2004 was driven by necessary investment in promotional
campaigns aimed at capturing new clients and investment in unbundling.
On 12 March 2004, Tiscali announced that it had signed an agreement to use the Cisco platform to launch voice over IP services.
OTHER PAYABLES (EUR/000) 31.12.2003 31.12.2002 CHANGE
Payables to directors (emoluments) 517 585 (68)
Payables to employees (accrued holiday pay) 5,326 1,752 3,574
Other payables 30,305 9,805 20,500
Total 36,148 12,142 24,006