Tiscali 2001 Annual Report Download - page 34

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26
Depreciation and amortisation of fixed and intangible assets, net of goodwill amortisation,
came to some EUR 122.2mn, up 514% on the EUR 19.9mn at end-2000.
Goodwill amortisation stood at EUR 362.2mn, an increase of 333% on 2000. This increase
was due to the expansion of the consolidation area.
Net financial income rose from EUR -7.2mn in 2000 to a positive result of EUR 13.8mn in
2001, thanks to the Group's liquidity.
Consolidated net profit was negative to the tune of EUR -1,664.4mn compared to EUR -
181.4mn in 2000. The poor performance in 2001 was largely due to the high incidence of
restructuring costs and to the write-down of goodwill relating to holdings recorded in
the balance sheet as shown below.
made during the year.
It should be emphasised that, in order to rationalize the existing staff and eliminate
duplications caused by the acquisition of Companies in countries where Tiscali was already
operating, the Company last year implemented a staff downsizing programme, cutting the
total workforce from 4,200 (on a proforma basis) at December 31, 2000 to 3,020 at end-2001.
The Group posted an EBITDA loss of EUR 170.4mn (27% of total revenues), compared with
losses of EUR 43.1mn in 2000 (25% of revenues).
This item was negatively affected by losses attributable to Companies acquired during the
year, which were gradually introduced into the Group's consolidation program.
The consolidation process has enabled the new Companies' operations to be streamlined,
and by the second half of 2001 there was already a marked improvement in their economic
and industrial performance. This became evident in the last quarter of 2001, when the
negative value of EBITDA decreased to 3.5% of revenues, partly because of the lower
incidence of indirect operating costs, which decreased to 43% of revenues.
The integration process involved the merging of the new Companies acquired into the
Group. This brought significant savings, as a number of branch offices were closed down
and redundant overheads were eliminated.
This positive effect is well illustrated by the proforma EBITDA performance across the four
quarters.
EBITDA by quarter
(in EUR mn)