Tiscali 2007 Annual Report Download - page 129

million in 2006; they include costs for services provided by
Group companies totalling EUR 17.9 million, (EUR 5 million in
2006) of which EUR 16 million represents the portions of rev-
enue remitted in relation to the partnership agreement with
the search engine
Google.
Costs for services provided by third parties amount to EUR 5.6
million (EUR 5.9 million in 2006) and mainly comprise costs
for professional advice in the legal, administrative and finan-
cial field totalling EUR 4 million, marketing costs for EUR 0.2
million, as well as insurance costs and other general expenses.
Detailed below are the services purchased from group compa-
nies:
EUR (000) 31.12.2007
Tiscali Uk Ltd 14,486
Tiscali B.V. 84
Tiscali GmbH 79
Tiscali Telecomunicaciones Sa 6
Tiscali Telekomunikace Sro 53
Tiscali Italia S.p.A. 2,466
Tiscali Services S.p.A. 737
Total 17,913
7. Payroll and related costs
EUR (000) 31.12.2007 31.12.2006
Wages and salaries 4,319 5,456
Remunerative component from Stock Option plans 886 -
Other personnel costs 5,186 3,885
Total 10,392 9,341
Payroll and related costs were essentially in line with those of 2006.
The remunerative component deriving from the Stock Option
plans totalling EUR 0.8 million, refers to the figurative charges
accrued in 2007 deriving from the plans assigned to the Chief
Executive Officer for EUR 0.45 million and to the Company’s
managers for EUR 0.43 million, with a matching balance in a
specific equity reserve. For further information on the Stock
Option plans assigned, reference should be made to the com-
mentary on shareholders’ equity in Note 20.
At 31 December 2007, Tiscali S.p.A. had 32 employees. The
relevant categories are disclosed below together with the cor-
responding figure at 31 December 2006.
Categoria 31.12.2007 31.12.2006
Dirigenti 15 15
Quadri 6 9
Impiegati 11 22
Operai - 3
Totale 32 49
8. Other operating costs
The table below shows a breakdown of these costs:
EUR (000) 31.12.2007 31.12.2006
Other operating expenses 2,169 1,113
Capital losses on disposal of equity investments 517 -
Total 2,686 1,113
Other operating costs include sundry operating charges for EUR
1.6 million and capital losses totalling EUR 0.5 million. The ca-
pital loss was generated at the time of the 100% disposal of the
equity investment held in the company Tiscali Services S.p.A. in
December 2007.
9. Writedowns of receivables from customers and
other writedowns
EUR (000) 31.12.2007 31.12.2006
Writedowns of receivables from customers 873 101
Other writedowns 15,423 40,459
Provisions for risks and charges 1,923 1,493
Total 18,220 42,053
The item other writedowns amounting to EUR 15.4 million in-
cludes EUR 6.4 million in relation to the writedown of the
equity investment held in Tiscali Deutschland Gmbh, EUR 8.3
million for the partial waiver of the receivables due from the
subsidiary Tiscali Services S.p.A. intended to cover the losses
accrued in 2006 and EUR 0.7 million for the partial waiver of
the receivables due from the subsidiary Quinary S.p.A..
The balance relating to 2006 included the writedown referring
to the subsidiary Tiscali Deutschland Gmbh totalling EUR 30
million.
Provisions for risks and charges totalling EUR 1.9 million in-
clude the provision for the coverage of the loss accrued in
2007 by the subsidiary Quinary S.p.A. for EUR 1.5 million.
TISCALI S.P.A. – SINANCIAL STATEMENTS AT 31 DECEMBER 2007
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