Tiscali 2008 Annual Report Download - page 36

Gross Operating Result (EBITDA)
Operational Income Statement - Group
EUR (mln) 31.12.2008 31.12.2007
Revenues 983.6 883.5
Gross Operating Margin (Gross Margin) 454.2 408.4
Indirect operating costs 276.4 251.2
Marketing and sales 84.7 87.6
Payroll and related costs 91.1 90.0
Other indirect costs 100.6 73.7
Other income/charges (19.3) (1.5)
Gross Operating Result (adjusted EBITDA) 197.0 158.7
Writedown of receivables and other provisions 41.9 38.8
Gross Operating Result (EBITDA): 155.1 119.9
Amortisation/depreciation 176.1 155.2
Gross result (EBIT) before restructuring costs and provision for risks (21.0) (35.2)
Gross Result (EBIT) (99.9) (74.9)
Group Net Result (242.7) (65.3)
The Gross Operating Result (EBITDA) for the year, before
provisions for risks, writedowns, depreciation and amortisation,
was EUR 197 million, an increase of 24.1% compared to the
EUR 158.7 million in 2007.
EBITDA net of writedowns of receivables and other provisions
was EUR 155.1 million in 2008 (15.8% of revenues), an increase
of 29.4% on the comparable figure in 2007 (EUR 119.9 million,
13.6% of revenues).
During the year, indirect operating costs stood at EUR 276.4
million (28.1% of revenues), in line in terms of proportion of
revenues when compared with the figure for the previous year
(EUR 251.2 million, 28.4% of revenues).
Indirect operating costs include payroll and related costs for
2008 totalling EUR 91.1 million, slightly higher than in 2007
(EUR 90.0 million), but down by one percentage point in terms
of incidence on revenues (10.2% in 2007 compared with 9.3%
in 2008). The analysis of payroll and related costs is even more
significant if one takes into account the increased dimensions
of the Group during 2007 due to the acquisition of the Pipex
broadband and voice division.
To illustrate the matter more clearly, here are the details of the
operating costs/revenues making up the Gross Operating Result,
as shown in the income statement table. In particular, the
reconciliation between “purchase of materials and outsourced
services” and “other operating costs” with the indirect operating
costs described in this paragraph is highlighted.
EUR (mln) 31.12.2008 31.12.2007
Revenues 983.6 883.1
Other revenues 12.4 5.2
Purchase of materials and services, of which: 710.5 633.3
- marketing 84.7 87.6
- indirect costs (*) 96.3 71.0
- other direct costs 529.4 474.7
Payroll and related costs 91.1 90.0
Other operating costs, of which: (2.5) 6.3
- other indirect costs (*) 4.3 2.6
- other operating costs (6.8) 3.7
Gross Operating Result 197.0 158.7
(*) Total Indirect Costs 100.6 73.7
Operating result (EBIT):
The operating result (EBIT) for 2008, net of provisions,
writedowns and restructuring costs, was negative and totalled
EUR 99.9 million, down with respect to the comparable figure
in 2007, equating to EUR 74.9 million.
Provisions for risks and writedown of receivables in 2008
amounted in total to EUR 41.9 million (EUR 38.8 million in
the same period in 2007). The increase is mainly attributable
to reorganization costs associated with the acquisition of Pipex
and the process for the corporate reorganization of the Italian
subsidiaries. Amortisation/depreciation in 2008 amounted to
EUR 176.1 million (EUR 155.1 million in 2007).
The figure was influenced by investments made during the
period for the development of the unbundling network and the
range of the ADSL services (modem and customer activation
costs).
Operating result by country
The gross operating result (EBITDA) by country presented
below is net of infraGroup costs (mainly services rendered by
the parent company and Information Technology services by
Italian operations to other subsidiaries).
The figure commented on also does not include receivable
writedowns by country.
REPORT ON OPERATIONS
35
FIG. 4.12 - EVOLUTION OF THE GROSS OPERATING RESULT
(ADJUSTED EBITDA) EUR MLN
18%
158,7
20%
197,0
% on revenues EBITDA
SOURCE: TISCALI
FY 2007 FY 2008