Tiscali 2009 Annual Report Download - page 45

Tiscali Group: Annual Report 2009
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Results of subsidiary Tiscali Italia S.p.A.
Operational Income Statement – Italy
31 December 2009 31 December 2008
EUR (mln)
Revenues 287.8 313.5
Gross Operating Margin (Gross Margin) 166.1 185.8
Indirect operating costs 73.2 105.4
Marketing and sales 16.6 35.5
Payroll and related costs 34.4 41.3
Other indirect operating costs 22.2 28.5
Gross operating result (adjusted EBITDA) 88.1 76.3
Operating result (EBIT) 24.7 (17.4)
Tiscali Italia S.p.A. closed 2009 with a gross operating result (adjusted EBITDA) of EUR 88.1 million
(30.6% of revenues), up compared with EUR 76.3 million (24.3% of revenues) in 2008. The Gross Margin,
an indicator of the industrial performance of the Italian subsidiary, fell by roughly 10% on a YoY basis and
around 1.5% in terms of its incidence on revenues. Operating costs, which fell from EUR 105.4 million to
EUR 73.2 million in 2009 (-30.5%), included marketing costs which fell by roughly 53.3% in absolute terms
on a YoY basis (from EUR 35.5 million in 2008 to EUR 16.6 million in 2009.
In 2009, the operating result (EBIT) for Tiscali Italia S.p.A. stood at EUR 24.7 million, compared to the loss
of EUR 17.4 million in 2008.
The gross operating result (adjusted EBITDA) increased when compared with the previous year, despite the
fall in revenues. This was due, in particular, to the improvement in the overall cost structure, optimisation
of sales expenses and the reduction in payroll and related costs, also achieved thanks to the voluntary
redundancy programme implemented in the first quarter of 2009.