CAPÍTULO 6. Definición de estrategias y acciones del Marketing Mix
6.4. Productos y servicios
6.4.1. Departamentos IKEA
6. Revenues
Consolidated revenue in the 2012 financial year amounted to EUR 92,720 thousand (2011: EUR 110,034 thousand).
telegate AG and the subsidiaries included in the consolidated financial statements provide telephone directory assistance services to private customers and business customers in Germany and abroad. These services are also provided to other telephone companies in Germany and Europe on the basis of outsourcing agreements.
telegate creates professional corporate websites for small and medium-sized enterprises in the form of a complete package which includes everything from registration of a domain to hosting and designing the website. In addition, telegate sells marketing advertisements as well as search engine marketing to businesses particularly in Germany.
Companies can use these products to inform their customers in detail, individually and promptly about their business activities and contact information.
The software business includes digital telephone books and yellow pages as well as route planners on CD-ROM and DVD.
The software solutions are ideally suited for private use and use by SMEs.
Explanations on the development of revenue can be found in the group management report and the presentation by business segment is contained in note 35.
7. Cost of revenues
The cost of services rendered in order to generate revenue of EUR 42,345 thousand (2011: EUR 45,008 thousand) primarily consist of capacity and infrastructure costs of the directory and media business. As a result of the decline in the directory business, the cost of sales decreased in particular with respect to personnel costs for the operator and management, infrastructure costs such as rents.
8. Selling and distribution costs
The selling and distribution costs of EUR 43,248 thousand (2011: EUR 46,937 thousand) mainly include the costs of telegate‘s own sales staff, inclusively selling costs (see note 21), in particular for the media business (telesales, telemarketing and the sales force) in the amount of EUR 18,315 thousand (2011: EUR 20,177 thousand), the costs for advertising (television advertising, externally consulting advertising agencies and cooperation agreements) in the amount of EUR 6,214 thousand (2011: EUR 8,400 thousand) as well as the costs of receivables management, including losses on receivables.
In addition, selling and distribution costs include the amortisation of customer bases of the media and software business as well as the klickTel brand, which was recognised as part of the purchase price allocation in connection with the acquisition of the former klickTel AG (now telegate Media AG). In the current financial year, an impairment loss of EUR 3,289 thousand (2011: EUR 0 thousand) on the media and software customer base resulted in a significant increase in amortisation expenses within selling and distribution costs.
9. General administrative expenses
The general administrative expenses in the amount of EUR 16,066 thousand (2011: EUR 14,796 thousand) primarily include the costs of corporate services such as finance, legal, human resources, IT, management board and infrastructure costs of these units. Furthermore, this item includes consulting fees especially for data cost litigation and other company-wide consulting projects – see note 36.
10. Personnel expenses
The following employee benefit expenses are included in the costs of corporate services:
in k€ 2012 2011
Wages and salaries 44,163 48,258
Social security costs 7,875 8,732
Retirement benefit plans 23 101
Total 52,061 57,091
Expenses for the unwinding of discounts on pension obligations are shown as part of financial income under other interest and similar expenses.
11. Depreciation and amortisation
Depreciation and amortisation included in the costs of corporate services are composed as follows:
in k€ 2012 2011
Amortisation of intangible assets 9,106 6,106
Depreciation of plant and equipment 1,629 1,801
Total 10,735 7,907
For further information on fixed assets see notes 23 and 24.
12. Other operating income
The other operating income amounts to EUR 75,291 thousand (2011: EUR 2 thousand). In financial year 2012 other operating income is primarily related to income from successful data litigation. For more information see note 36.
13. Other operating expenses
The other operating expenses amount to EUR 15,189 thousand (2011: EUR 80 thousand). In financial year 2012 other operating expenses is primarily related to expenses from successful data litigation. For more information see note 36.
14. Net Financial income
Net interest income
in k€ 2012 2011
Interest income from data cost litigation 23,533 0
Interest income from current deposits and fixed-term deposits 332 1,341
Interest income from bank deposits 10 10
Interest income from loans and receivables past due 2 1
Other interest and similar income 57 90
Interest and similar income 23,934 1,442
Interest expense for bank overdrafts and guarantees -22 -24
Interest expense from factoring 0 -22
Other interest and similar expenses -846 -47
Interest and similar expenses -868 -93
Net interest income 23,066 1,349
For information regarding interest income from fixed-term deposits with a related party see note 43.
For information on interest income from data cost litigation see note 36.
Net income from financial assets and marketable securities
in k€ 2012 2011
Gain on sale of marketable securities 0 24
Net income from financial assets and marketable securities 0 24
The net income from the sale of marketable securities results from investments in liquid money money market funds during the 2011 financial year.
Net income from foreign currency translation
in k€ 2012 2011
Gains on foreign currency translation 10 18
Loss on foreign currency translation -13 -21
Net income from foreign currency translation -3 -3
Net gains and net losses on financial instruments by measurement category
Net interest income from financial instruments
Net income from financial instruments
in k€ 2012 2011 2012 2011
Cash and cash equivalents 319 428 -1 -2
Loans and receivables 2 879 -2,726 -4,181
Available-for-sale financial assets 0 0 0 24
Financial liabilities measured at amortised cost 0 0 -1 -1
Interest income from cash and cash equivalents as well as from loans and receivables in the 2011 financial year include interest income from related parties; see also note 43.
Net income from loans and receivables mainly includes changes in impairment allowances, losses from derecognition, gains from subsequent payments received and the reversal of valuation allowances previously recognised on trade accounts receivable.
15. Income taxes
Income taxes in Germany comprise corporate income tax, trade tax and the solidarity surcharge. Subsidiaries abroad are charged with income taxes comparable to the German corporate income tax.
in k€ 2012 2011
Current taxes 21,974 3,612
of which:
- Germany 21,901 3,519
- Abroad 73 93
Deferred income taxes 5,180 -2,428
Income tax expense shown 27,154 1,184
The following fiscal reconciliation shows why the tax expense recognised for the current year does not correspond to the expected tax expense when earnings before taxes are multiplied with the tax rate of 29.939% applicable for the full 2012 financial year (2011: 29.695%):
in k€ 2012 2011
Income before income tax 74,226 4,585
Applicable tax rate 29.939% 29.695%
Anticipated tax expense -22,223 -1,361
Increase / reduction of the income tax burden by:
Tax effects from loss carryforwards and temporary differences for which no defer-red tax assets were previously recognised
0 0
Tax effects on temporary differences / loss carryforwards for which no deferred tax assets were recognised in the current period
0 0
Reversals of valuation allowances on deferred tax assets 0 2
Valuation allowances on deferred tax assets -247 -59
Income tax rate differences -734 403
Tax effect on expenses / income (permanently) non-deductible for tax purposes -248 -104
Taxes, previous years 20 0
Tax effect on tax-free income -2 -3
Effects of the tax audit -3,700 0
Tax effect of other differences -20 -62
Income tax expense shown for the financial year -27,154 -1,184
The effective tax rate as ratio of reported income tax to the net income before tax results 36.583% (previous year 25.819%) The marginal change of the tax rate results from the adjusted trade tax multipliers.
The income tax liabilities amount to EUR 12,094 thousand (2011: EUR 8 thousand), and the income tax receivables amount to EUR 27 thousand (2011: EUR 647 thousand). The tax liabilities in financial year 2012 mainly resulted from income generated from the successfully concluded data cost litigation as well as a provision related to a tax audit conducted at telegate AG.
The company shows deferred tax assets in the amount of EUR 266 thousand as of 31 December 2012 (2011: EUR 2,898 thousand). The recognition of deferred tax liabilities increased from EUR 1,674 thousand (as of 31 December 2011) by EUR 2,548 thousand to EUR 4,222 thousand; see also note 25.
16. Restructuring measures and non-recurring effects on the income statement
The total amount (after the deduction of expenses) for restructuring measures and non-recurring effects included in the profit before tax amounts to EUR 75,025 thousand (2011: EUR 3,579 thousand) and is comprised as follows:
Restructuring measures
A detailed and formal restructuring plan was announced and the execution was started in the financial year 2012 for the purpose of consolidating one call centre with two others in order to increase profitability and optimise the cost structure in the Directory Assistance Solutions business. This task was nearly completed by the end of January 2013.
Outsourcing of the operative call center units in Spain and consolidation of one call centre with two others in the financial year 2011 is nearly completed.
The total amount of EUR 1,109 thousand (2011: EUR 1,805 thousand) related directly to these restructuring measures is shown in the income statement under cost of sales and general administrative expenses. See note 28 for more information.
Non-recurring effects on the income statement
The legal actions taken by telegate AG, Datagate GmbH and telegate Media AG for the compensation of losses resulting from excessive data costs resulted in a total income for the period (after the deduction of expenses) before taxes in the amount of EUR 79,274 thousand (2011: EUR 0 thousand). The majority of these amounts is included in the income statement under other operating income and expense and net interest income as well as under the cost of sales, selling and distribution costs and general administrative expenses (see notes 9, 12, 13, 14 and 36).
Capacity adjustments (including termination of contracts in the previous year) were made in the 2012 financial year.
These resulted in non-recurring effects on the income statement in the amount of EUR 3,140 thousand (2011: EUR 1,774 thousand) and are shown under cost of sales, selling and distribution costs and general administrative expenses.
17. Earnings per share
The calculation of basic and diluted earnings per share for the financial years ended on 31 December is based on the following data:
Financial year ended on 31 December 2012 2011
Numerator (in k€)
Income attributable to ordinary shareholders of the parent 47,072 3,401
Denominator (number)
Weighted average number of ordinary shares for calculating basic earnings per share 19,111,091 19,111,091
Dilutive effect of the stock options 0 0
Weighted average number of ordinary shares for calculating diluted earnings per share 19,111,091 19,111,091
Basic and diluted earnings per share (in EUR) 2.46 0.18
All 2,123,454 shares repurchased by telegate under the 2010 share buy-back program were redeemed on 24 January 2011 by means of simple capital reduction in accordance with section 237 (3) no. 2, (4) and (5) AktG (German Stock Corporation Act). The execution of the capital reduction was entered in the commercial register on 15 February 2011.
The retirement of shares in the 2011 financial year as such did not have any effect on the weighted average number of ordinary shares outstanding because they had already been repurchased in 2010 and, as treasury shares, had reduced the average number of ordinary shares.
No transactions involving ordinary shares or potential ordinary shares occurred between the end of the reporting period and the time these consolidated financial statements were prepared.