Tiscali 2007 Annual Report Download - page 41

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REPORT ON OPERATIONS
40
Analysis of the Group economic, Equity and finan-
cial position
Foreword
The accounting period ended at 31 December 2007 saw the
consolidation of the Tiscali Group in the geographic areas of
Italy and the UK, where product and infrastructural invest-
ments were concentrated. Furthermore, the acquisition of
Pipex’s broadband and voice division was concluded on the
UK market, and consolidated as from September 2007, bear-
ing witness to the desire to expand on the UK market.
Tiscali Group revenues during 2007, relating to the activities
in Italy and the UK and those of certain minor subsidiaries
(including Tinet), which include Pipex’s broadband and voice
division as from 13 September 2007, amounted to EUR 910.9
million, up by 34% on an annual basis. The systematic growth,
net of the Pipex acquisition, came to around 18% on an annu-
al basis.
The gross operating result (EBITDA) came to EUR 161.4 mil-
lion, in line with plan targets and up by 61% when compared
with 2006. Net of Pipex’s contribution, the systematic growth
of the Group EBITDA in 2007 came to 50%.
CONSOLIDATED INCOME STATEMENT 2007 2006 CHANGE CHANGE %
EUR 000
Revenues 910,969 678,481 232,488 34%
Other income 5,652 3,685 1,967 53%
Purchase of materials and outsourced services 651,144 498,389 152,755 31%
Payroll and related costs 97,166 77,883 19,283 25%
Other operating costs 6,885 5,472 1,413 26%
Gross operating result (EBITDA) 161,426 100,422 61,004 61%
Writedowns of receivables from customers 27,332 15,394 11,938 77%
Stock option plan costs 11,697 11,697 100%
Gross operating result net of receivable writedowns and stock option plan costs 122,397 85,028 37,369 44%
Restructuring costs, provisions for risk reserves and writedowns 40,101 45,013 (4,912) 11%
Amortization/depreciation 162,744 130,095 32,649 25%
Other atypical (Income) charges - (77,229) - -
Operating result (80,448) (12,852) (67,596) -526%
Portion of results of equity investments carried at equity (10) (937) 927 99%
Net financial income (Charges) (72,802) (29,741) (43,061) 145%
Other net financial income (charges) (17,881) (21,985) 4,104 19%
Pre-tax result (171,141) (65,515) (105,626) 161%
Income taxes 17,305 5,851 11,454 196%
Net result from operating activities (on-going) (153,836) (59,664) (94,171) -158%
Result from assets disposed of and/or destined to be disposed of 78,511 (76,950) 155,461 202%
Net result (75,324) (136,614) 61,290 45%
ECONOMIC POSITION