Tiscali 2008 Annual Report Download - page 113

7.1 Analysis of Tiscali S.p.A.’s economic, equity
and financial position
Foreword
The statements presented below have been drawn up on the
basis of the statutory financial statements at 31 December
2008, to which reference should be made. In this connection,
note that the 2008 statutory financial statements represent the
separate financial statements of the Parent Company Tiscali
S.p.A. and have been prepared in observance of the
International Accounting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) as approved
by the European Union, as well as the instructions issued by
way of implementation of Article 9 of Italian Legislative Decree
No. 38/2005. The IFRS are understood to include all the
reviewed international accounting standards (IAS) and all the
interpretations of the International Financial Reporting
Interpretations Committee (IFRIC), previously known as the
Standing Interpretations Committee (SIC).
Economic position
EUR (000) 31.12.2008 31.12.2007
Capital gains (losses) from equity investments - (156)
Value adjustments on equity investments (Other writedowns) (954,696) (15,423)
Net financial charges (1,915) (310)
Revenues from services and other income 17,425 15,462
Payroll and related costs, services and other operating costs (24,275) (20,540)
Other writedowns (17,351) (2,797)
Taxes (263) (77)
Result from assets disposed of and/or destined to be disposed of (250) -
Net result (981,324) (23,842)
Value adjustments on equity investments mainly comprise the
writedown of the equity investment held in the company World
Online International N.V equating to EUR 954 million.
Revenues from services mainly comprise (EUR 15.6 million) the
fees contractually agreed deriving from ‘Corporate’ services to
subsidiaries including the payments for licences to use the Tiscali
trademark calculated as a percentage of the sales revenues
generated by the Group companies using said trademark.
The item also includes revenues from third parties for EUR 12
million deriving from the partnership agreement with the
search engine Google which flows in and is invoiced to the
customer by the parent company. The portions of revenues
pertaining to the Group companies are then remitted by the
same with simultaneous recognition in the financial statement
of the parent company of infraGroup costs amounting to EUR
12 million. Note that, in accordance with the matters laid down
by the international accounting standards (IFRS), the value of
these infraGroup costs is deducted from the pertinent revenues
since they are adjusting items and for this reason the content
of the item was reclassified in the previous year as well.
The most significant cost component was represented by
payroll and related costs, which amounted to EUR 14 million,
while other operating costs included management consultancy
services and professional fees pertaining to current operations.
Other writedowns include the provisions to risk reserves for
EUR 17 million.
Taxes payable for the year amounting to EUR 0.3 million are
classified in the item taxes.
The result from assets disposed of and/or destined to be
disposed of, presented a loss of EUR 0.2 million and refers to
the capital loss generated on the sale of 100% of the equity
investment held in the company Quinary S.p.A., which took
place in November 2008.
7.2 Equity and financial position
BALANCE (000) 31.12.2008 31.12.2007
Non-current assets 241,616 1,187,779
Current assets 30,181 51,288
Assets held for sale - -
Total Assets 271,797 1,239,067
-
Shareholders’ equity 154,096 930,201
Total Shareholders’ equity 154,096 930,201
Non-current liabilities 44,115 24,199
Current liabilities 73,587 284,667
Liabilities directly related to assets held for sale - -
Total Liabilities and Shareholders’ equity 271,797 1,239,067
Following the loss reported in 2008 equating to EUR 981.324
million, accumulated losses at 31 December 2008 amounted
to EUR 1,142,688 million.
The shareholders’ equity at 31 December 2008 was therefore
reduced to EUR 154.096 million, compared with the EUR 930.021
million at 31 December 2007; therefore the case envisaged by
Article 2446 of the Italian Civil Code arose, involving a reduction in
the share capital by more than a third. The Directors called the
General Shareholders’ Meeting for the appropriate measures.
Assets
Non-current assets
Non-current assets mainly represent controlling equity
investments in the more important Group companies for a total
of EUR 236 million.
TISCALI S.P.A. - 2008 FINANCIAL STATEMENTS
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