Tiscali 2007 Annual Report Download - page 117

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TISCALI S.P.A. – SINANCIAL STATEMENTS AT 31 DECEMBER 2007
116
Analysis of the economic and financial position
of Tiscali S.p.A.
Foreword
The statements presented below have been drawn up on the
basis of the statutory financial statements at 31 December 2007,
to which reference should be made. In this connection, note that
the 2007 statutory financial statements represent the separate
financial statements of the Parent Company Tiscali S.p.A. and
have been prepared in observance of the International Account-
ing Standards (“IFRS”) issued by the International Accounting
Standards Board (“IASB”) as approved by the European Union,
as well as the instructions issued by way of implementation of Ar-
ticle 9 of Italian Legislative Decree No. 38/2005. The IFRS are
understood to include all the reviewed international accounting
standards (“IAS”) and all the interpretations of the International
Financial Reporting Interpretations Committee (“IFRIC”), previ-
ously known as the Standing Interpretations Committee (“SIC”).
Economic position
EUR (000) 31.12.2007 31.12.2006
Capital gains (losses) from equity investments (156) -
Value adjustment on equity investments (Other writedowns) (15,423) (38,421)
Net financial charges (310) (508)
Revenues from services and other income 31,438 19,267
Payroll and related, service and other operating costs (36,517) (22,068)
Other writedowns (2,797) (3,632)
Taxes (77) (163)
Net result (23,842) (45,525)
The item Capital gains (losses) from equity investments, pre-
senting a negative balance of EUR 0.2 million, refers to the
capital loss generated on the 100% disposal of the equity in-
vestment held in the company Tiscali Services S.p.A. in De-
cember 2007 and the capital gain generated by the 100%
disposal of the equity investment held in the company Tiscali
Telecomunicaciones SA.
Value adjustments on equity investments include EUR 6.4 million
in relation to the writedown of the equity investment held in Tis-
cali Deutschland Gmbh (written down for EUR 30 million last
year) and EUR 8.3 million relating to the waiver, against the cov-
erage of losses, of receivables due from the subsidiary Tiscali Ser-
vices S.p.A. to the parent company.
Revenues from services mainly comprise (EUR 14.7 million) the
fees contractually agreed deriving from ‘Corporate’ services to
subsidiary companies including the payments for licences to use
the Tiscali trademark calculated as a percentage of the sales rev-
enues generated by the Group companies using said trademark.
The item also includes revenues from third parties totalling EUR
16 million deriving from the partnership agreement with the
search engine
Google,
which have been invoiced to the customer