Home » Tiscali Annual Reports » 2009 Annual Report - page 82

Tiscali 2009 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2009 Tiscali annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

9.8 Explanatory Notes

Tiscali S.p.A. is a limited company incorporated under the laws of the Republic of Italy at the Cagliari

Companies’ Register.

The Tiscali Group provides a wide range of services to its customers, both private individuals and companies,

from dial-up and ADSL Internet access to more speciﬁc and hi-tech products to satisfy the needs of the

market.

This offer, which also includes voice services (such as mobile telephony) and portal services, enables Tiscali

to compete effectively with the major operators on the market.

Thanks to its unbundling network (ULL), its innovative services and its strong brand, Tiscali has achieved a

strategic position in the market of telecommunications.

The ﬁnancial statements are presented in EUR (EUR), which is the currency used to conduct most of the

Group’s operations. Foreign activities have been included in the consolidated ﬁnancial statements according

to the standards detailed below.

In preparing these ﬁnancial statements the directors have taken the going-concern assumption and therefore

have drafted the ﬁnancial statements using the standards and policies that are applied to companies in

operation.

Assessment of the business as a going-concern and business outlook and prospect

Events and uncertainties regarding the business as a going-concern

The Tiscali Group incurred a consolidated loss for the ﬁnancial year of EUR 387.0 million, of which EUR

372.3 million was related to disposals during the year, and has a deﬁcit in consolidated net shareholders’

equity of EUR 67.0 million, after the share capital increase completed in November 2009 for approximately

EUR 180.0 million and after the effects of writing-off EUR 42.3 million in debt, in accordance with the

restructuring agreements signed with ﬁnancial institutions. In addition, as at 31 December 2009, the Group

reports gross indebtedness of EUR 240.6 million and current liabilities which are greater than current (non-

ﬁnancial) assets by EUR 85.3 million.

At 31 December 2008 losses amounted to EUR 271.1 million (EUR 143.3 million of which from assets sold),

shareholders’ equity amounted to EUR 4.8 million, and gross ﬁnancial indebtedness amounted EUR 644.8

million. At the same date the difference between current assets and liabilities (non ﬁnancial) was negative at

EUR 187.2 million.

The ﬁnancial and economic disequilibrium of the Group, as already in evidence in the ﬁnancial statements

for year ended at 31 December 2008, caused the Directors in early 2009 to prepare a new Business Plan

and related Financial Plan to enable the Tiscali Group to begin restructuring its debts in order to guarantee

its long-term ﬁnancial equilibrium.

Subsequently, during 2009 the Group undertook certain actions (overall referred to as the ‘Restructuring

Plan’) aimed at achieving the long-term ﬁnancial and economic equilibrium for the Group and to re-launch

its commercial activities (as described in paragraph of the Report on Operations, 7.4 “Signiﬁcant events

during the year”).

Consolidated Financial Statements and Explanatory Notes