Tiscali 2001 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2001 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.

Page out of 174

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174

84
B) PRODUCTION COSTS
PURCHASES OF RAW MATERIALS, SUPPLIES, CONSUMABLES AND OTHER GOODS
Breakdown of this line item is as follows:
The item "Other purchases" is composed of about EUR 8.9mn disbursed by the Parent
Company to implement the fiberoptic network in the Czech Republic; goods for re-sale for
merchandising activity and equipment for sale with the ADSL service, as well as
miscellaneous promotional materials.
COMPOSITION OF EXPENSES FOR SERVICES
Analysis and composition of expenses for services:
12.31.2001 12.31.2000 CHANGE
Purchase of goods for resale 17,446 1,998 15,448
Purchase of consumables 6,463 878 5,585
Purchase of advertising and promotion materials 1,308 496 812
Other purchases 17,374 5,326 12,048
Total 42,591 8,698 33,893
12.31.2001 12.31.2000 CHANGE
Leased lines 209,425 38,105 171,320
Purchase of traffic 166,603 52,958 113,645
Advertising and promotion 100,380 32,145 68,235
Maintenance costs 16,877 5,049 11,828
Advisory services 20,992 7,424 13,568
Cost of sales 18,006 7,984 10,022
Utilities 7,787 1,328 6,459
Bank and postal charges 1,528 2,460 (932)
Transportation expenses 6,639 2,970 3,669
Other services 44,098 19,805 24,293
Total 592,335 170,228 422,107
This account includes the main industrial costs as detailed below:
Leased lines. This is a typical cost item, found in all subsidiaries and accounts for 35.4%,
of total costs for services and 32.9% of total revenues. The increase is linked mainly to the
expansion of the consolidation area. The reorganisation of the Group has already made it
possible to obtain significant savings, transmission capacity being equal. Starting from FY
2001, the Group's objective has been to support activity expansion by decreasing the
percent incidence of this type of cost.
Purchase of traffic. This item, totalling EUR 167mn is directly linked to the Voice area and
the type of Internet connection sold through the purchase of traffic, and is a pure