Tiscali 2003 Annual Report Download - page 51

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5353
The negative balance of financial income and charges (EUR -2.3 million) relates to interest on bank loans. This figure was posi-
tive in 2002 (EUR 33 million) because of a number of one-off items.
The balance of extraordinary income and charges was positive at EUR 3.1 million (income: EUR 20.6 million; charges: EUR 17.5
million), versus EUR -19 million in 2002.
Financial position and performance of the parent Company
The value of total non-current assets fell by 2% versus the previous year, owing to write-downs made to certain equity investments
and the depreciation process.
Short-term net debt stood at EUR 28.1 million against EUR -29.5 million as of 31 December 2002. Gross debt as of 31 December
2003, including medium-/long-term bank debt, showed a EUR 60 million increase on the figure at 31 December 2002 (EUR -
42.3 million). Financial movements, shown in detail in the parent Company’s cash flow statement, were affected by operations,
financial management and extraordinary items, as well as investment activities.
Parent Company investments
The parent Company invested a total of EUR 47.1 million over the year, including leasing operations worth EUR 0.2 million.
Investment in tangible and intangible assets was EUR 34.2 million and EUR 12.9 million respectively, mainly spent on expan-
ding production capacity, particularly the growth of ADSL services, and on carrying out necessary network upgrades (ie the extra
bandwidth per client with ADSL services compared to dial-up).
Significant events taking place after year end
No significant events took place in the first few months of 2004.
However, the Company received a VAT refund in January for EUR 8.8 million.
The Company’s performance in the first few months of 2004 was in line with both revenue and profit targets.
Outlook
Operations for the early part of the year have so far matched expectations. Substantial growth in ADSL has been achieved, partly
thanks to government support in encouraging the take-up of broadband. Voice services have also surged ahead following a com-
mercial relaunch.
IN EUR MILLIONS 31.12.2003 31.12.2002 % CHANGE
Non-current assets 2,148.7 2,187.3 (2)%
Current assets 189.4 250.1 (24)%
Total assets 2,338.1 2,437.4 (4)%
Shareholders’ equity 1,576.6 1,661.5 (5)%
Risk provisions and staff severance fund 27.7 57.6 (52)%
Liabilities 733.8 718.3 2%
Total net liabilities 2,338.1 2,437.4 (4)%