Tiscali 2007 Annual Report Download - page 47

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tracts regarding the purchase of network and capacity rights,
whereas those relating to tangible assets essentially refer to devel-
opment of the unbundling network and related equipment.
The investments made during 2007 led to the activation of 800
sites in the UK and around 490 in Italy.
Non-current assets also include, amongst other items,
Deferred
tax assets
totalling EUR 106.6 million. This amount comprises
EUR 72.3 million in relation to subsidiaries operating in the UK
and the remaining EUR 34.3 million to Tiscali International BV
(Netherlands), a Group sub-holding company and reference enti-
ty for the purposes of the Dutch tax unit.
Current assets
Current assets mainly include “Receivables from customers”
(EUR 164.4 million at 31 December 2007, compared to the
EUR 135.7 million balance at 31 December 2006), as well as
cash balance equalling EUR 134.2 million at 31 December
2007, with respect to EUR 3.8 million cash balance at 31
December 2006.
Liabilities
Non-current liabilities
Non-current liabilities at 31 December 2007 amounted in total
to EUR 786.6 million (EUR 222.3 million at 31 December
2006). The significant increase is primarily due to the change
in composition of items of a financial nature explained in the
‘Financial Position’ section below.
Current liabilities
Current liabilities totalling EUR 606.3 million (EUR -673.9 mil-
lion at 31 December 2006) refer mainly to items of a financial
nature (EUR 480.1 million due to banks and other lenders).
As required by CONSOB Note no. DEM/6064293 on 28 July
2006, the following table links the period result to the share-
holders’ equity of the Group, with the corresponding values of
the parent company.
REPORT ON OPERATIONS
46
RECONCILIATION BETWEEN THE STATUTORY FINANCIAL STATEMENTS OF THE PARENT COMPANY
AND CONSOLIDATED FINANCIAL STATEMENTS 31.12.2007
NET SHAREHOLD.
Eur (000) RESULT EQUITY
Tiscali S.p.A. balances (23,842) 930,201
Elimination of effects of transactions between consolidated companies:
- Writeback of equity investments in subsidiaries 21,998 21,998
- Shareholders’ equity assessment of companies carried
at cost in the financial statements (10) 2,466
- Adjustment to goodwill from intra-group transaction - (162,546)
Book value of consolidated equity investments - (905,167)
Shareholders’ equity and result for the period of consolidated companies (14,692) (159,343)
Differences allocated to assets of consolidated companies
and related amortisation:
- Consolidation difference – on-going operations - 515,022
- Writedown of consolidation difference (68,262) (68,262)
Effect of other adjustments:
- Other adjustments 9,483 (4,721)
BALANCES AS PER CONSOLIDATED FINANCIAL STATEMENTS – Group share (75,324) 169,647
BALANCES AS PER CONSOLIDATED FINANCIAL STATEMENTS – Minority interest 10,016 37,322
BALANCES AS PER CONSOLIDATED FINANCIAL STATEMENTS (65,308) 206,970
Financial position
At 31 December 2007 and in relation to on-going operations
only, the Tiscali Group could count on cash and cash equiva-
lents totalling EUR 134.2 million, against a net financial posi-
tion as of the same date presenting debt of EUR 636.5 million
(EUR 397.2 million at 31 December 2006).
The financial position relates to on-going operations only and
is summarised in the following table:
EUR (ml) 31.12.2007 31.12.2006
A. Cash 134.2 3.8
B. Other cash equivalents 16.3 11.5
C. Securities held for trading - -
D. Cash and cash equivalents (A) + (B) + (C) 150.5 15.3
E. Current financial receivables 12.1 21.2
F. Current bank payables 176.2 374.8
G. Current portion of non-current debt - -
H. Other current financial payables (*) 19.5 12.3
I. Current financial debt (F) + (G) + (H) 195,7 387,1
J. Net current financial debt (I) – (E) – (D) 33.1 350.6
K. Non-current bank payables 450.1 -
L. Bonds issued 43.8 -
M. Other non-current payables (**) 109.5 46.6
N. Non-current financial debt (K) + (L) + (M) 603.4 46.6
O. Net financial debt (J) + (N) 636.5 397.2
(*) includes leasing payables (**) includes leasing payables and amounts due to shareholders