Tiscali 2008 Annual Report Download - page 87

determined by provisions for EUR 35.4 million, used for EUR
22.2 million, by the effect of the change in the exchange rates
for EUR 10.5 million and by the change in the consolidation
area (reclassification of the TiNet Group among assets destined
to be disposed of) for EUR 0.4 million.
Other receivables and other Current Assets (note 22)
EUR (000) 31.12.2008 31.12.2007
Other receivables 15,690 16,349
Accrued income 15,343 18,849
Prepaid expenses 15,761 36,454
Total 46,794 71,652
Other Receivables, amounting to EUR 15.7 million, mainly include
VAT receivables for EUR 6.8 million, advances to suppliers
amounting to approximately EUR 3.4 million and other receivables
due from the tax authorities for EUR 1.5 million.
Accrued income (EUR 15.3 million) mainly relates to accrued
revenues pertaining to the period for services in the access
segment. These are mainly accruals on marketing campaigns
and leasing costs.
Prepaid expenses of EUR 15.8 million relate to prepaid costs
associated with long-term rental of lines, international circuit
agreements as well as hardware and software maintenance costs.
The book value of the items included in the balance is
approximate to their fair value.
Other current financial assets (note 23)
EUR (000) 31.12.2008 31.12.2007
Guarantee deposits 2,709 7,511
Other receivables 721 647
Total 3,430 8,158
Other current financial assets mainly include deposits recorded
for Tiscali S.p.A. totalling EUR 2.7 million
whose release is
envisaged over the short-term and other receivables pertaining
to the UK companies. The reduction with respect to the previous
year is fully attributable to the UK subsidiaries.
Cash and cash equivalents (note 24)
Cash and cash equivalents at 31 December 2008 amounted
to EUR 24.2 million and include the Group’s cash, essentially
held in bank current accounts.
For the comments relating to the change in cash and cash
equivalents, please refer to the Consolidated Cash Flow
Statement (page 58).
Shareholders’ equity (note 25)
(EUR 000) 31.12.2008 31.12.2007
Share capital 308,273 212,207
Share premium reserve 990,857 902,492
Stock Options reserve 3,840 9,969
Equity bond reserve - 22,053
Accumulated losses and other reserves (1,292,148) (977,073)
Minority interests (6,046) 37,322
Total 4,777 206,970
Changes in the various shareholders’ equity items are detailed
in the relevant table.
At 31 December 2008, the share capital amounted to EUR 308.3
million corresponding to 616,545,485 ordinary shares with a par
value of EUR 0.50 each.
On 31 August 2007, a share capital increase was resolved for a
total of EUR 150 million, equating to 149,792,880 shares; this
capital increase was carried out and fully subscribed in February
2008. Net of the related costs, the capital increase led to a rise
in the equity for a total of EUR 145.3 million, of which EUR 74.9
million attributable to the share capital and EUR 70.4 million to
the share premium reserve.
On 15 September 2008, since the conditions for the conversion
of the convertible bond applied, said bond was automatically
converted into shares.
The bond’s regulations, in fact, envisaged that if prior to the maturity
of the bonds, the average of the official prices (calculated with
reference to the previous 20 days) was for five consecutive stock
market days equal to or less than the value of the share capital and
the accrued interest divided by 42.4 million shares, the bond would
be automatically converted into the full amount of shares indicated.
The total of the share capital and the interest accrued as of the
conversion date (15 September 2008) came to EUR 62,958,750
million. This amount, divided by the unit price of EUR 1,487 per
share led to the issue of 42,339,442 shares.
The share capital increased by EUR 21,169,721, and the
difference, amounting to EUR 41,789,029, was booked to increase
the Share premium reserve.
The conversion of the convertible bond led to the cancellation of
the equity component of the same.
The item Other reserves includes the net effect of the bond
conversion transaction, for EUR 5.9 million.
The share premium reserve underwent a change of EUR 88.4
million due to the share capital increase transactions indicated
above and as a result of utilisation to cover the loss reported by
the parent company in 2007.
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CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES