Tiscali 2009 Annual Report Download - page 151

Tiscali Group: Annual Report 2009
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Revenues from services mainly comprise (EUR 10.2 million) the fees contractually agreed deriving from
‘Corporate’ services to subsidiary companies including the payments for licences to use the Tiscali tra-
demark calculated as a percentage of the sales revenues generated by the Group companies using said
trademark.
The item also includes income from third parties of EUR 5 million arising from the partnership contract with
the Google search engine which is allocated to and invoiced by the Parent Company. The income propor-
tions relevant to the Group companies are then transferred back to the latter with individual acknowledge-
ments in the Parent Company financial statements of the inter-group costs of EUR 5 million. It is pointed
out that, in accordance with the provisos of international accounting principles (“IFRS”), the value of such
inter-group costs have been deducted from the inherent income as adjustment items.
The most significant cost component is represented by payroll and related costs, which amounted to EUR
5.3 million while other operating costs include management consultancy services and professional expen-
ses pertaining to current business operations.
Other write-downs include the devaluation of the credit positions held to be unenforceable towards Group
companies in the amount of EUR 121 million and for charges borne for the restructuring of the debt of the
UK subsidiary Tiscali UK Holdings Ltd of about EUR 7 million.
Taxes payable for the year amounting to EUR 0.2 million are classified in the taxes item.
The results of assets sold and/or intended for sale, which is positive to the tune of EUR 0.4 million, includes
the positive effect of the capital value achieved on the sale of the 60% shareholding held in the Company
Tiscali International Network S.p.A. (which took place in May 2009) equal to EUR 3.4 million net of the rela-
ted charges of around EUR 0.4 million. The item also includes the charges incurred on the occasion of the
sale of the UK Company Tiscali UK Ltd, which was controlled indirectly, and which took place in July 2009
for an amount equal to EUR 2.6 million.
10.2 Balance sheet and Cash flow statement
31 December 2009 31 December 2008
(EUR 000)
Non-current assets 134,623 241,616
Current assets 20,060 30,182
Assets held for sale - -
Total Assets 154,683 271,798
- -
Shareholders’ equity 93,747 154,096
Total Shareholders’ equity 93,747 154,096
Non-current liabilities 5,955 44,115
Current liabilities 54,750 73,587
Liabilities directly related to assets held for sale 231 -
Total Liabilities and Shareholders’ equity 154,683 271,798