Tiscali 2008 Annual Report Download - page 34

Evolution of the customer base – Italy
(000) 31.12.2008 31.12.2007
ADSL customers 586.1 552.7
of which: LLU 385.1 331.3
Narrowband and voice customers 277.4 527.6
Dual play customer 254.2 171.4
Unbundled network coverage in Italy at 31 December 2008
came to 486 sites.
The average ARPU for broadband services in Italy amounted
to EUR 30 per month, an increase compared to the average
of EUR 29 for the year 2007 and in line with plan targets.
United Kingdom
Operational Income Statement – United Kingdom
EUR (mln) 31.12.2008 31.12.2007
Revenues 683.6 608.7
of which: ADSL revenues 371.8 370.6
of which: voice revenues 240.3 155.2
EBITDA 108.1 98.6
EBIT (88.6) (54.2)
Tiscali UK generated revenues of EUR 683.6 million during
the year, an increase of 12.3% on 2007 (revenues of EUR
608.7 million). This performance is the result of growth, both
organic and via external lines, via the VNL acquisition
(Homechoice) in August 2006 and the Pipex Division acquisition
in September 2007.
The UK operations also saw the highest growth in the ADSL
and Voice segments. In fact, ADSL access services generated
revenues of EUR 371.8 million (54.4% of total revenues) in
2008, compared with a figure of EUR 370.6 million in 2007.
Voice services, which also include analogue products sold
alongside ADSL services, generated revenues of EUR 240.3
million, an increase of 54.9% on the EUR 155.2 million in 2007.
ADSL users at 31 December 2008 amounted to about 1.8 million,
down slightly with respect to the previous year. These include
907 thousand direct customers (LLU), and around 818 thousand
customers who subscribed to dual play services.
Evolution of the customer base – the United Kingdom
(000) 31.12.2008 31.12.2007
ADSL customers 1,767.9 1,829.9
of which: LLU 907.0 642.9
Narrowband and voice customers 312.5 558.1
Dual play customers 818.6 787.7
The unbundling network coverage in the United Kingdom at
31 December 2008 amounted to 951 sites. The average ARPU
of the broadband services in the UK came to EUR 28 a month,
REPORT ON OPERATIONS
33
Revenues by country
Italy
Operational Income Statement – Italy
EUR (mln) 31.12.2008 31.12.2007
Revenues 313.5 292.0
of which: ADSL revenues 124.6 101.8
of which: voice revenues 95.1 73.9
EBITDA 76.3 62.9
EBIT (17.4) (2.4)
During 2008, Tiscali Italia SpA generated revenues for EUR 313.5
million, up by 7.4% with respect to the figure of EUR 292.0 million
during the same period in 2007. Revenues from voice and ADSL
services, the core business of the Italian subsidiary, disclose a
higher growth rate. In detail, revenues pertaining to ADSL access
services amounted to EUR 124.6 million, up by 22.4% when
compared with the EUR 101.8 million in 2007. It is appropriate to
specify that, following the launch of the bundled voice and data
proposals, ADSL revenues include all the “flat” components of the
proposals (including therein access fees). The traffic generated,
on the other hand, is included in the “Voice” revenue line.
Voice revenues amounted to EUR 95.1 million in the year, an
increase of 28.7% compared to 2007 (EUR 73.9 million).
At 31 December 2008 Tiscali recorded a net increase of over 33
thousand new ADSL customers in Italy when compared to 31
December 2007, bringing the total customer base for this service
up to 586 thousand, including over 385 thousand already active
and linked to the Tiscali network infrastructure (unbundled).
During the year, over 82 thousand customers subscribed to the
double play services (data and voice via the internet), bringing the
total number of double play customers in Italy to around 254
thousand. The customer base using dial-up access (narrowband)
and CPS voice services stood at around 277 thousand users. The
reduction in the narrowband customer base follows the market
trend which sees progressive replacement with broadband services
in the proposals to customers.
SOURCE: TISCALI
FIG. 4.9 – REVENUES BY COUNTRY
31% ITALY
69% UNITED KINGDOM