Tiscali 2008 Annual Report Download - page 129

financial matters for EUR 5 million, marketing costs for EUR
0.8 million, and insurance costs for EUR 0.3 million and other
general expenses for EUR 0.9 million.
Costs for services acquired from Group companies, net of the
above adjustment, amounted to EUR 1.8 million and entirely
refer to the Italian subsidiary Tiscali Italia S.p.A. for general costs,
travel expenses and those linked to personnel management.
Payroll and related costs (note 4)
Payroll and related costs refer in detail to:
EUR (000) 31.12.2008 31.12.2007
Wages and salaries 6,950 4,319
Remunerative component from Stock Option plans 2,481 886
Other personnel costs 4,817 5,186
Total 14,248 10,392
The increase in costs for wages and salaries with respect to the
previous year, totalling EUR 3.8 million, is essentially justified
by the economic effect of the resignation of the Group’s Chief
Executive Officer, Tommaso Pompei, in February 2008, as well
as the resignation of the Finance Director, Massimo Cristofori,
in June 2008.
The remunerative component deriving from the Stock Option
plans totalling EUR 2.5 million, refers to the figurative charge
accrued in 2008 deriving from the plans assigned to the
Company’s managers, with a matching balance in a specific
equity reserve and includes the effects of the acceleration of
the plan reserves for the former Chief Executive Officer and the
former Finance Director, who maintained their assigned rights
after leaving the Group.
For further information on the Stock Option plans assigned,
reference should be made to the commentary on shareholders’
equity in Note 7.5.21.
Also note that the remunerative component deriving from the
Stock Option plans relating to managers who are employees of
other Group companies is not booked to the income statement
of the parent company Tiscali S.p.A. but is booked to increase
the book value of the equity investments in the Group
companies on which the management benefiting from the
Stock Option plans depend (representing a capital grant in
their favour) with a matching balance in the form of an increase
in the specific equity reserve.
Other payroll and related costs include the provision of EUR
2.4 million for Restructuring charges intended to cover the
process for overhauling the organizational structures, launched
in November 2008 and now near to completion.
At 31 December 2008, Tiscali S.p.A. had 22 employees.
The breakdown by category is disclosed below together with
the corresponding figure at 31 December 2007.
Category 31.12.2008 31.12.2007
Senior managers 11 15
Middle managers - 6
Office staff 11 11
Total 22 32
Other operating costs (note 5)
The table below shows a breakdown of these costs:
EUR (000) 31.12.2008 31.12.2007
Other operating expenses 1,769 2,169
Capital losses on disposal of equity investments - 517
Total 1,769 2,686
Other operating costs include sundry operating charges
totalling EUR 1.6 million. In the previous year, the capital loss
of EUR 0.5 million reflected the disposal of 100% of the equity
investment held in the company Tiscali Services S.p.A., which
took place in December 2007.
Writedowns of receivables from customers and other
writedowns (note 6)
EUR (000) 31.12.2008 31.12.2007
Writedowns of receivables from customers - 873
Restructuring costs and other writedowns 954,695 15 423
Provisions for risks and charges 17,350 1 923
Total 972,046 18,220
The item restructuring costs and other writedowns amounting
to EUR 955 million (EUR 15.4 million in 2007) essentially
included the writedown of the equity investment in the
company World Online International N.V. for EUR 954 million
in addition to the writedown of other minor equity investments.
The balance relating to 2007 included the writedown relating
to the subsidiary Tiscali Deutschland Gmbh amounting to EUR
6.4 million and the partial waiver of the receivables due from
the subsidiary Tiscali Services S.p.A. intended to cover the
losses accrued in 2006 for EUR 8.3 million.
Provisions for risks and charges amounting to EUR 17 million
refer to the adjustment of the Provisions for the coverage of
losses on investee companies.
Financial Income (Charges) (note 7)
A breakdown of net financial charges for the year of EUR 1.9
million is provided below.
TISCALI S.P.A. – FINANCIAL STATEMENTS AND EXPLANATORY NOTES
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