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Financial Statements
2010 2009
At 1 January 3,938,111 93,801,898
Release of provision for receivables impairment (88,583) (89,863,787)
At 31 December 3,849,528 3,938,111
The creation and release of provision for impaired receivables have been included in “Provision for impairment” in the
income statement. The other classes within trade receivables do not contain impaired assets. The maximum exposure to
credit risk at the reporting date is the value of total provision for impairment of trade receivables.
e) Concentration of credit risk
The Company is exposed to concentration risk attributed to the concentration of the trade receivables and cash balances.
The Company has a high concentration of credit risk with respect to 2 domestic carriers (2009: 2 domestic carriers) which
individually represent higher than 10% of its revenues.
For bank balances and deposits, there is a significant concentration of credit risk with respect to 6 banks (2009: 4
banks), which individual hold more than 10% of the Company’s cash balances and deposits. However, no financial loss is
expected based on what has been referred above in note 3.1.d).
f) Liquidity risk
Liquidity risk is the risk that the entity will have difficulty in raising the financial resources required to fulfil its commitments.
Liquidity risk is held at low levels through effective cash flow management and availability of adequate cash. Cash flow
forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that is has
sufficient cash to meet operational needs, to fund scheduled investments and debt and to comply with loan covenants.
The table below analyses the financial liabilities into relevant maturity groupings based on the remaining period at the
balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows. Undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in
the balance sheet, as the impact of discounting is not significant.
At 31 December 2010 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
286,408,306 523,247,715
Borrowings 95,973,374 95,812,879
0 0 0
Trade and other payables 47,438,077 286,408,306 523,247,715
95,812,879
Total 143,411,451
At 31 December 2009 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
286,936,707 618,497,644
Borrowings 96,120,339 95,973,374
0 0 0
Trade and other payables 49,500,671 286,936,707 618,497,644
95,973,374
Total 145,621,010
3.2 Capital risk management
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
structure to reduce the cost of capital.
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 29 of 51
2010 2009
At 1 January 3,938,111 93,801,898
Release of provision for receivables impairment (88,583) (89,863,787)
At 31 December 3,849,528 3,938,111
The creation and release of provision for impaired receivables have been included in “Provision for impairment” in the
income statement. The other classes within trade receivables do not contain impaired assets. The maximum exposure to
credit risk at the reporting date is the value of total provision for impairment of trade receivables.
e) Concentration of credit risk
The Company is exposed to concentration risk attributed to the concentration of the trade receivables and cash balances.
The Company has a high concentration of credit risk with respect to 2 domestic carriers (2009: 2 domestic carriers) which
individually represent higher than 10% of its revenues.
For bank balances and deposits, there is a significant concentration of credit risk with respect to 6 banks (2009: 4
banks), which individual hold more than 10% of the Company’s cash balances and deposits. However, no financial loss is
expected based on what has been referred above in note 3.1.d).
f) Liquidity risk
Liquidity risk is the risk that the entity will have difficulty in raising the financial resources required to fulfil its commitments.
Liquidity risk is held at low levels through effective cash flow management and availability of adequate cash. Cash flow
forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that is has
sufficient cash to meet operational needs, to fund scheduled investments and debt and to comply with loan covenants.
The table below analyses the financial liabilities into relevant maturity groupings based on the remaining period at the
balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows. Undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in
the balance sheet, as the impact of discounting is not significant.
At 31 December 2010 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
286,408,306 523,247,715
Borrowings 95,973,374 95,812,879
0 0 0
Trade and other payables 47,438,077 286,408,306 523,247,715
95,812,879
Total 143,411,451
At 31 December 2009 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
286,936,707 618,497,644
Borrowings 96,120,339 95,973,374
0 0 0
Trade and other payables 49,500,671 286,936,707 618,497,644
95,973,374
Total 145,621,010
3.2 Capital risk management
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
structure to reduce the cost of capital.
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 29 of 51
