2009 April | Debtconsolidationcab.com

Apr

30

Maurice Levy, CEO of Publicis Group

4 CommentsUncategorizedApril 30th, 2009

“With an increase in its published income and a 1.3% decline in its growth limited to 4.4%, Publicis Group shows a good resistance to severe economic crisis and publish a best qu’attendus.

Although I can not be satisfied to grow organic withdrawal, all the information in our possession are in the same direction: the decline in the market is much more pronounced than expected. Based on figures published by our major competitors down 5.6% to 6.6%, it appears clearly that we are gaining market share. The strategy over the past few years is bearing fruit: the growth of activities in digital and emerging markets has served to shock. In addition, we offer comprehensive and highly adapted to the new era that will open, confirming its success to advertisers: 1 in New Business in 2008, we maintain that position and dig away in the first quarter of 2009 and all indications are that this is the case in April. These successes are reinforced by the strengthening of relationships with our clients in all sectors. The efforts of the Group are fully geared towards four objectives: better support our customers in this difficult period, gain market share, protect our margins and consolidate the financial health of the Group. The configuration of forecasts suggesting that the low point of the reduction will be achieved in the summer and the second half of 2009 will be better than the first. The recovery to the increase expected in the summer of 2010. The most recent indicators seem to support this scenario.>>

I. income

The Group’s consolidated income rose to 1 075 million for the first quarter 2009, up 1.3% compared to the income of the first quarter of 2008.

Organic growth was down 4.4% for the quarter, down less than the decline in the market.

II. Activity 1st Quarter 2009

The strength of income and a decline in organic growth limited to the period are mainly attributable to the effects of the strategy implemented in recent years: the growth of digital activities in the United States serves as a shock to lower market and the good performance of some emerging markets like Latin America, Turkey, Central Europe or the Middle East helps to reduce the negative impact of mature economies. In Q1 2009, the advertising accounts for 38% of total income, the SAMS 41% (including 100% of digital) and the Media 21%. The digital activities alone represent 20.5% of total revenue against 17.6% in 1st quarter 2008 and 19.6% for the full year 2008 (at 2009 exchange rates).

The portfolio is well diversified. More than 50% is growing. The automotive sector shows a sharp decrease (almost 20% at constant currency) and represents 13% of income in the first quarter of 2009 against 15% for the year 2008.

Q1 Revenue by geographic area

(in millions Revenue Growth 2009/2008
euros) organic
1st 1st
Quarter Quarter
2009 2008
Europe 357 403 -6.6% -11.6%
North America 526 466 -3.6% 13.0%
Asia-Pacific 114 116 -6.3% -1.6%
Latin America 51 52 3.1% -2.1%
And Africa 27 24 3.0% 12.8%
Middle East
Total 1 075 1 061 -4.4% 1.3%

Europe recorded a decline in growth of 6.6%. Most countries – the United Kingdom (-4.9%), France (-7.4%) but especially in Southern Europe (-20.5%) – affected by the slowdown in the first quarter, stronger in March. Germany remains in positive territory (0.9%) and Central European countries enjoyed good growth (14.8%).

North America, with -3.6% growth, mainly through better resistance to digital activities. Asia-Pacific is highly penalized by Korea, Japan or Australia.

Latin America and the countries of Africa and the Middle East are growing.

In this difficult economic climate, the Group strives to maintain its profitability and financial strength. A number of measures decided upon in September 2008 as the freeze on recruitment, with targeted adjustment shall be maintained in 2009. The focus on managing operating costs, development operations optimization as simplifications of structures, “common roof” ( “multi-doors”), the consolidation of CSP (Service Centers shared) as “Americas>> bear fruit in the year 2009 and especially in a full year in 2010.

The implementation of an ERP at the Group was launched early this year.

- Net debt at 31 March 2009

On 19 January 2009, Publicis Groupe has purchased 12.7% of the original amount of the Oceane 2018 (Oceane Publicis Groupe SA FR0000180127-2018-2,75%) for a total of 95 million.

At 31 March 2009 net debt stood at 1 097 million against EUR 1 077 million at 31 March 2008.

- New Business: 1.7 billion of net gains

Despite a marked wait advertisers, Publicis Groupe garnered 1.7 billion U.S. dollars of net New Business in Q1, demonstrating the dynamism of the teams and the relevance of its offer. This performance, Publicis Group in front of the pack in terms of budget savings for the first three months of the year (ranking Nomura).

April looks very good with the conquest of the budget HP-PCS (Personal Computers-for Europe, the Middle East and Africa) and confirmation of the successful Shanghai Expo in 2010, Visa in 2012 and Siemens (China).

III. HIGHLIGHTS OF FIRST QUARTER 2009

- Employee share ownership

Pursuant to authorization voted by the Annual General Meeting of 3 June 2008 (23rd resolution), the Management Board of Publicis Groupe, after obtaining the prior consent of the Supervisory Board, decided to further involve staff development Group.

First, the Executive Board, approved by the Supervisory Board, decided the allocation of 50 shares in the first half of 2009 to each of the 4 500 employees working in France in subsidiaries held more than 50%. These shares are allocated without performance conditions, but subject to minimum length of three months and presence for a period of two years from the date of grant.

This bonus program in France is the first step in a broader program of employee ownership which will gradually all Group employees in countries where it has a significant presence. This plan will be implemented over the next two years because of the diversity of legal and fiscal regimes of the countries where the Group operates.

Secondly, a co-investment has been proposed to nearly 160 key leaders of the Group, allowing them to subscribe to a program of investment in Publicis Groupe shares.

This program is based on a personal investment in Publicis Groupe shares through a dedicated commitment of key leaders. It is accompanied by an incentive to fidelity and performance of the Group. Leaders-investors will receive, subject to conditions, after three or four years of presence, according to the laws of country, loyalty bonus shares. In addition and subject to the performance of Publicis Groupe compared to its peers in terms of organic growth and operating margin, leaders investors will receive shares of performance.

As members of the Management Board – leaders officers – the bonus share issue were decided in accordance with the recommendations AFEP / MEDEF October 2008. Accordingly, they will receive shares of that performance related only to performance by the Group both in the growth margin compared to its peers. The rules of attendance and detention are the same for all.

In bringing together the widest employees and by creating this system of co-investment and incentives, the Group intends to make a strong testimony to all those who are the real stakeholders in its success. The Group also wishes to encourage its employees to provide its customers the most innovative, most creative and most efficient. The group also wants to encourage its employees to work towards its development, both through the conquest of new budgets and the consolidation of its margins in the long term in order to preserve the culture and independence of Publicis Groupe.

- External growth in Q1 2009

Beginning in April, Publicis Groupe has acquired the Nemos, the lead agency in interactive communication in Switzerland. Founded in 2002, Nemos, based in Zurich, is one of the best agencies in flash programming and multimedia. With ten experts in digital, it’s customers include Carlsberg, Mövenpick and Condor Films.

This transaction is another demonstration of Publicis Groupe continuously enrich its digital offerings with targeted acquisitions in this sector.

IV. PERSPECTIVES

The most recent forecasts from ZenithOptimedia show a contraction in advertising spending worldwide by 6.9% severely affecting the media while the analog digital continues to grow.

These latest forecasts should be read in light of projected year-end ranged decay of global advertising spending to 0.2%. They reflect the unprecedented downturn in the global economy. Other market indicators, although slightly less negative are in the same direction.

In this context, Publicis Group, with its strategic choices, increased attention to managing costs in a concern to protect its margins and financial position.

The conquest of new budgets for a net $ 1.7 billion attest to the relevance of the supply of Publicis Groupe and dynamism of its teams around the world. The objective of gains in market share is a priority of the Group come true.

Next General Assembly: 9 June 2009 at 10am at Publiciscinémas

About Publicis Groupe

The 4th global communication, the second global consulting and media buying as well as the world leader in digital communication and health. The Group is present in 104 countries on 5 continents and has approximately 45 000 employees.

The supply of communication services of the Group, with clients both local and international, includes advertising, through three global advertising networks, Leo Burnett, Publicis and Saatchi & Saatchi and two multi-hub: Fallon and Bartle Bogle Hegarty (49% owned subsidiary). Advice and buying media is available through two worldwide networks: Starcom MediaVest Group and ZenithOptimedia; and expertise in digital and interactive communications through Digitas network in particular. Publicis Group has recently launched VivaKi to take advantage of synergies of operations independent of Digitas, Starcom MediaVest Group, ZenithOptimedia and Denuo. This entity will develop new services and tools, digital platforms and next generation. The Group offer also includes marketing services and specialized communication, such as health communication, communication corporate and financial public relations, direct and relationship marketing, event communications, sports, and ethnic communication.

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Apr

30

ArcelorMittal Announces Results

4 CommentsUncategorizedApril 30th, 2009

Including an additional $ 0.3 billion from credit lines deferred announced on 28 April 2009.1

A line of credit “Start Forward” is a commitment to refinance an existing line at maturity.

Days of rotation are defined by the accounts payable days and days of stock which are subtracted the accounts receivable days. The days account receivables are based on cost of goods sold, while accounts payable days are based on turnover.

Reduction target for the amount of net debt at 30 September 2008.

The financial information contained in this press release and Appendix 1 have been prepared in accordance with International Financial Reporting Standards as established by the International Accounting Standards Board (IASB). If the financial information contained in this announcement have been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain enough information to constitute an interim financial report as defined in International Auditing Standards Standard IAS 34 – ” interim financial reports “. Unless otherwise indicated, the figures in this press release have not been audited.

U.S. dollars were converted into euros on the basis of an average exchange rate (U.S. $ / Euro) of 1.3029, 1.3192 and 1.4983 for the first quarter 2009, fourth quarter 2008 and first quarter 2008 respectively.

Segment Shipments Steel Solutions and Services are not consolidated, in the case of shipments from other operating subsidiaries of ArcelorMittal.

In the first quarter of 2009, the Company recorded exceptional costs amounting to $ 1.2 billion primarily related to inventory impairments. In the fourth quarter of 2008, the Company recorded exceptional costs amounting to $ 4.4 billion related to impairment of inventory and supply contracts for raw materials and provisions for a reduction and litigation.

In accordance with IFRS, a reduction of goodwill resulted primarily from the recognition of deferred tax assets on net operating losses previously not recognized in purchase accounting, particularly due to restructuring of carbon segments Dishes Europe ($ 65 million) and Long Carbon Americas and Europe ($ 70 million). Furthermore, some of the goodwill Flat Carbon Europe segment were reduced in response to current market conditions and forecasts.

The foreign exchange losses and other net financial expenses include bank charges, interest on pensions and impairment of financial instruments.

In accordance with IFRS, this reduction of goodwill resulted primarily from the recognition of deferred tax assets on net operating losses previously not recognized in purchase accounting in connection with a restructuring.

In accordance with IFRS, a reduction of goodwill resulted from the recognition of deferred tax assets on net operating losses previously not recognized in purchase accounting in connection with a restructuring of companies.

Segment Shipments Steel Solutions and Services are not consolidated, in the case of shipments from other operating subsidiaries of ArcelorMittal.

The debt / equity ratio (gearing) is defined by (A) the long-term debt excluding share within one year of long-term debt, including the short-term interest-bearing loans, non-cash and cash equivalents, restricted cash related to (B) equity.

Days of rotation are defined by the accounts payable days and days of stock which are subtracted the accounts receivable days. The days account receivables are based on cost of goods sold, while accounts payable days are based on turnover.

The acquisition of the proceeds from the issuance of convertible bonds results in a mandatory reduction commitments under the Forward Start Facilities.

These figures come from the consolidated financial statements and audited for the year ended 31 December 2008.

In the first quarter of 2009, the Company recorded exceptional costs amounting to $ 1.2 billion primarily related to inventory impairments. In the fourth quarter of 2008, the Company recorded exceptional costs amounting to $ 4.4 billion related to impairment of inventory and supply contracts for raw materials and provisions for a reduction and litigation.

EBITDA means operating income, including depreciation, impairment charges and exceptional items.

Segment Shipments Steel Solutions and Services are not consolidated, in the case of shipments from other operating subsidiaries of ArcelorMittal.

Total all production purposes, concentrates, granules and blocks (including the share of production contracts and strategic long-term).

In the first quarter of 2009, the Company recorded exceptional costs amounting to $ 1.2 billion primarily related to inventory impairments. In the fourth quarter of 2008, the Company recorded exceptional costs amounting to $ 4.4 billion related to impairment of inventory and supply contracts for raw materials and provisions for a reduction and litigation.

Means changes in the assets the sum of accounts receivable including inventory and accounts payable including prepaid expenses and deferred charges.

In the first quarter of 2009, the Company recorded exceptional costs amounting to $ 1.2 billion primarily related to inventory impairments.

Apr

30

Quarterly Financial Information January to March 2009

4 CommentsUncategorizedApril 30th, 2009

The volume of orders of Sartorius Stedim Biotech Group (Paris: DIM) increased by 6.3% in the first quarter of fiscal 2009 from 98.5 million to 104.7 million, an increase of 3.3% at constant exchange rates. This development is primarily based on rates of double-digit growth in sales of single-use products with high margin applications dedicated to biopharmaceuticals. The dynamic trend recorded during the final months of last year was therefore confirmed in this first quarter. In North America, where measures to reduce stocks decided by our clients are mostly came forward in late 2008, demand has grown by more than a third over the first quarter last year. The activity of single-use products is also rising in Asia | Pacific, while in total command of the entries are down because of extremely high volumes recorded on the equipment during the previous year .

Turnover

An increase of 6.1%, the turnover of the Sartorius Stedim Biotech Group rose from 91.3 million to 96.8 million, an increase of 3.6% at constant currency. The main drivers of the growth are the products of single-use technology. The highest growth rates were recorded in the North America and Asia | Pacific.

Key figures

Data not audited
€ million (unless otherwise stated) 1st quarter
2009
1st quarter
2008 Change
Change in%
in%
(at constant exchange rates
constant)
Turnover 96.8
91.3 +6.1 +3.6
- Europe1) 57.0
58.1 – 2.0 – 0.1
- America Nord1) 23.7
19.2 +23.5 +7.7
- Asia | Pacifique1) 12.1
11.3 +7.5 +4.5
- Other marchés1) 4.0
2.6 +50.7 +50.7
EBITA 12.6
9.4
EBITA margin in% 13.0
+10.3
Result net2) 6.6
4.6
Earnings per share (€) 2)
1) The location of customers
2) Outside amortissment

Evolution results

Up 34.1%, operating income (EBITA = earnings before interest, taxes, depreciation and amortization) of the first three months of fiscal 2009 amounted to 12.6 million euros, against 9.4 million euros euros for the same period last year.

EBITA margin had improved from 10.3% to 13.0%. The increase in turnover and economies of scale resulting, as well as favorable exchange rates and improvements in product mix of the range for single use, have contributed significantly to this increase in profitability.

Excluding depreciation, net profit (Group share) stood at 6.6 million (against 4.6 million euros over the same period in 2008). Earnings per share amounted to 0.39 euros against 0.27 euros in the first quarter of 2008.

Balance sheet and cash

At 31 March 2009, the total balance of Sartorius Stedim Biotech Group is a slight increase compared to the balance sheet at 31 December 2008: 654.5 million euros against 652.3 million. Shareholders’ equity also increased over this period, from 371.6 million to 377.8 million euros. The ratio of equity to total balance sheet of the Group stood at a comfortable level of 57.7% (31 December 2008: 57.0%).

The gross debt was reduced from 163.3 million to 159.5 million euros over the first three months of the year. The ratio net debt / EBITDA of the last twelve months is 2.6 (against 2.7 at 31 December 2008), while the interest coverage ratio (ratio EBITDA / net financial expenses) was an increase to 5 9 compared to the end of the year 2008 (5.6). The ratio of net debt on equity remained unchanged at 0.4. The main indicators of creditworthiness therefore continue to show healthy levels.

Cash flow from operations amounted to 9.4 million euros, a significant increase over the same period of fiscal 2008 (2.6 million). This development was mainly due to higher net income and a slight reduction in inventory in the first quarter of the year, while the same period last year was characterized by a significant formation stocks. Over the same period, the cash flows related to investments is slightly higher: 4.8 million against 4.2 million. After repayment of bank debt, cash flow financing amounted to -8.4 million (against 0.8 million in 2008).

Assessment

We are pleased with the dynamic evolution of our business. We see, in particular by the double-digit growth of single-use products and the remarkable improvement in net income, the confirmation that our business model, suggesting good prospects.

Perspectives

Considering the positive development of our activities in the first quarter of the year and the number of promising projects on which we work with our customers, we plan for the year 2009, an increase of our turnover and increased even more marked results.

However, the uncertainties that continue to influence the international situation does not allow us to make reliable quantitative predictions for the evolution of the Group’s activities in 2009.

Dividends

On 21 April 2009, the General Assembly of Sartorius Stedim Biotech SA has decided to distribute to shareholders a dividend of 0.30 euro per share for fiscal 2008. The amount distributed is 5.1 million euros (previous year: 5.1 million), representing a payout ratio of 29.4% (previous year: 19.5%) on the basis of consolidated net income excluding depreciation.

Apr

30

Continued growth of the installed base

5 CommentsUncategorizedApril 30th, 2009

As announced on 10 March 2009, the annual turnover 2008/09 amounted to 70.2 million euros, up 2% in real. It is slightly down in the Licensing (-2%) but shows a sharp growth in business services (17%). Finally, the product mix in favor of the Services, as the latter now represents 25% of Group sales against 22% in 2007/08. In contrast to the decline in new business, mainly located on the fourth quarter, the installed base of recurring licenses grew by 2.3% over the year, bringing the rate of recurrence of this activity to 77% against 76% on last year.

It should be noted that 0.5 million of turnover is due to acquisitions (and vdots Mindware) done at the end of the fiscal year. Consolidated since 15 October 2008, vdots contributes to the tune of € 0.1 million in licensing revenue, while Mindware, consolidated since 16 December 2008, contributed about 0.4 million € to the Services.

Improvement of the EBITDA margin

Up 8% to 7.07 million, operating income before depreciation and provisions reached 10.1% of sales, reflecting the Group’s focus on controlling its cost structure.

The research and development expenses are down almost 10% to 12.2 million euros, mainly due to the control of investment and the increase of the Research Tax Credit on the exercise without slow down as much effort R & D expenses in research and development represented 17.5% of turnover on the year and 29.3% of the Licenses.

Business investment has continued, and the costs of marketing and sales are up 3% to 22.5 million.

General and administrative expenses amounted to 10.0 million euros, up 1.3 million euros as a result of exceptional costs and non recurring items and changes benefit costs.

In total, operating expenses are properly controlled and increased by 1.3% compared to 2007/08.

After taking into account depreciation and provisions that are in progress, operating income was 5.4 million, representing an operating margin of 7.7%, slightly down from -5% compared to 2007 / 08.

Impact of hedging

The return incorporates the hedging put in place early in the year. The 2008/09 financial result thus to 0.23 million euros against a loss-essentially change of -2.42 million euros over the previous year.

Net income amounted to 4.21 million, up a very significant 81% compared to net income of 2.33 million euros issued under 2007/08.

Soundness of the financial structure

After funding for acquisitions, repayment of debts and substantial strengthening of self-possession – which was increased to 7.3% of capital and reflects management’s confidence in the prospects of the Group – the cash at the close of the year amounted to 8.6 million. The generation of cash flow from operations amounted to € 3.2 million in net increase over the previous year.

The ratio of debt to equity of the Group remains modest at 15%.

Highlights

Changes in product mix in favor of services, in line with the strategy group

The development of ESI Group in this phase leads to a gradual shift in product mix in favor of the Services.

Indeed, the growth of business services reflects:

- Increasing the sensitivity of economic actors in the realistic simulation became a competitive necessity, creating a growing demand for software,

- The unique know-how and experience of ESI Group to accompany the necessary methodological change in the form of high value-added services.

The leadership of ESI Group in services should lead to several positive effects:

- Enhancing the cash flow of the services related to the high level of expertise, the gross margin of business services and end 2008/09 has increased to 33.5% against 32.0% at the end 2007/08.

- Ultimately accelerating sales induced by the Licensing Services and support technology transfer to giving orders and their subcontractors.

Amplification of the adoption of integrated solutions to large customers

ESI Group has continued to increase in its external customers through the deployment of new solutions. The turnover among its top 10 clients clear up 11%, reflecting the predominance of strategic solutions ESI Group from its main donors of orders that have chosen to build their installed bases to leverage in a crisis, very significant gains in time and productivity, but also innovation enabled by the implementation of these solutions.

Acquisition and integration of vdots

VDOT is an American software dynamic management processes and innovative projects in the industry. Through this acquisition, ESI Group adds an essential and highly competitive system VisualDSS Decision Support for Engineering IAO. This platform facilitates performance for teams compliance with the planning and securing the transfer and successful integration of data. It enables quick decision making and reliable by all actors of PLM in general and the numerical simulation in particular, to the accelerated completion of projects and increase their level of automation and flexibility. ESI Group is already using this tool in-house on its new projects to maximize its own development process.

Acquisition and integration of Mindware Engineering

American Society leader with headquarters in the United States, Mindware is a recognized player in particular in the engineering services in the field of fluid dynamics (Computional Fluid Dynamics (CFD)), but also in the fluid / structure and data management. Mindware enjoys strong relationships with its customers in the Automotive, Aerospace and Defense that provides solutions based on simulation for design and development of their industrial products. Mindware operates on three continents, mainly in the United States, but also in Europe and India.

This acquisition allows ESI Group to accelerate the adoption of virtual prototyping in the design of the CFD-based simulation.

Mindware a turnover estimated in 2008 (proforma) to about $ 6.9m, up more than 20%, with operating profitability exceeding 10%.

Alain de Rouvray, Chairman and CEO of ESI Group, concludes: “If the current context of widespread economic crisis obscures visibility on the progress of the adoption of our solutions, especially on new orders taken, it also highlighted the strength of the recurrence of our business and strengthened the confidence of our customers. In a heightened sense of competitiveness and the need to innovate while reducing costs and time, our solutions End-to-End Virtual Prototyping “can manage throughout and with remarkable efficiency, virtual prototyping industrial products, from inception to final development, to limit the complexity and risks and work towards a prototype real ultimate validation “right first time.” With a solid financial structure, proved the relevance of our strategic positioning and business, particularly among our large customers, we reiterate our confidence in the development of ESI Group, dissemination of our offer to a variety of sectors, and further improving our profitability.

About ESI Group

Editor software for virtual testing, ESI is a pioneer and major global player in digital simulation for prototyping and manufacturing processes that take into account the physics of materials. ESI has developed a coherent set of business applications to realistically simulate the behavior of products during testing, to develop the manufacturing processes in synergy with the performance, and evaluate the impact of the environment on product performance. This offer represents a unique, open and collaborative design based on simulation, enabling continuous improvement and collaborative virtual prototype with the gradual elimination of physical prototypes during product development. ESI employs more than 750 high-level specialists through its worldwide network, covering over 30 countries. ESI Group is listed on compartment C of NYSE Euronext Paris.

Apr

30

6.Situation cash and stock

5 CommentsUncategorizedApril 30th, 2009

At 31 March 2009, the net cash position of the Group amounted to 1 878.1 million euros compared to 1 644.6 million at 31 December 2008.
In the first quarter of 2009, the cash flow came out at 147.4 million euros compared to 123.3 million euros for the first quarter of 2008. The working capital decreased from 35.3 million. The total investment for the first quarter of 2009 amounted to 58.2 million euros compared to 68.1 million euros a year earlier.
At 31 March 2009, consolidated shareholders’ equity, amounted to 2 604.8 million compared to EUR 2 495.7 million at 31 December 2008.
Subject to the approval of its shareholders in general meeting on 30 April 2009, Technip will pay a dividend of 1.20 euro per share on 12 May 2009.
III. OUTLOOK CONFIRMED FOR THE YEAR 2009
Turnover
- Group turnover: 6.1 to 6.4 billion euros at current exchange rates
- Sales of Subsea segment: stable or moderate growth
Operating Margin
- Rate of combined operating margin Onshore / Offshore up
- Rate of Subsea operating margin: 16 to 18% Information on the results of the first quarter of 2009 includes this press release, its Annexes and the presentation available on the Group website (www.technip.com) .
Technip, a world leader in project management, engineering and construction for the oil and gas, offers an extensive portfolio of solutions and innovative technologies.
With 23 000 people in the world, integrated capabilities and proven expertise in infrastructure submarine (Subsea), platforms at sea (Offshore) and large processing units on land (Onshore), Technip is a key to the development of sustainable responses to the challenges of energy in the 21st century.
Located in 46 countries on five continents, Technip has operating centers, industrial facilities (manufacturing, assembly bases, construction sites) and a fleet of specialized vessels for pipeline installation and construction under marine.
The Technip share is listed on Euronext Paris and on the U.S. OTC market.
ANNEX I (a) CONSOLIDATED INCOME IFRS, Unaudited In millions of euros First quarter (except earnings per share and average number of shares on a diluted basis) 2008 2009 Turnover 1 816.8 1 569 0 Gross margin 241.7 262.4 Research and development expenses (10.9) (11.6) Selling, administrative and other (93.9) (96.9) EBIT 136.9 153.9 Result of transactions 0.0 5.2 Operating income 136.9 159.1 Net financial (8.3) (12.1) Income from equity affiliates 0.2 0.7 Profit before tax 128.8 147 7 Income taxes (38.8) (44.4) Minority interests (0.1) (4.2) Net income 89.9 99.1 Average number of shares on a diluted basis 105 314 199 106 513 996 Earnings per share on a diluted basis (1) 0.85 0.93 1) In accordance with IFRS, earnings per share calculated on a diluted basis is calculated by dividing the net profit for the period by the average number of shares outstanding plus the weighted average number of stock options not yet exercised and shares granted calculated using the “stock” (IFRS 2) under the shares. Under this method, stock option plan are reviewed by plan, are identified as options which are dilutive ie those whose exercise price plus the future IFRS 2 charge and not yet recognized is less than the average share price over the reference period from the calculation of earnings per share.
ANNEX I (b) IFRS CONSOLIDATED BALANCE SHEET EUR million 31 December 2008 31 March 2009 (audited) (unaudited) Fixed assets 3 387.7 3 456.6 Deferred taxes 201.4 221.7 NON-CURRENT ASSETS 3 589.1 3 678.3 Construction contracts 140.8 193.6 Inventories, receivables and other receivables 1 997.3 1 710.5 Cash and cash equivalents 2 404.7 2 689.8 CURRENT ASSETS 4 542.8 4 593.9 TOTAL ASSETS 8 131.9 8 272.2 Shareholders’ equity (part Group) 2 473.4 2 578.3 Minority interest 22.3 26.5 SHAREHOLDERS ‘EQUITY 2 495.7 2 604.8 Financial liabilities Non-current 734.2 780.3 Non-current 104.2 104.3 Deferred taxes and other liabilities 142.0 126.5 Non-current liabilities Non-current liabilities 980.4 1 011.1 Current borrowings 25.9 31.4 Current Provisions 182.0 185.4 Construction contracts 1 253.0 1 138.4 Trade payables and other liabilities 3 194.9 3 301.1 CURRENT LIABILITIES 4 655.8 4 656.3 Total Liabilities 8 131.9 8 272.2 Change in equity (Group share) Unaudited Capital December 31, 2008 2 473.4 Net profit at 31 March 2009 99.1 Capital increases – Impacts of IAS 32 and 39 (57.6) Payment of dividends (1) – Self control – Translation adjustments and other 63 4 Shareholders’ equity at 31 March 2009 2 578.3 (1) The payment of a dividend of 1.20 euros, equivalent to approximately 127.5 million euros, was proposed by the Board of Directors and will be submitted to approval by the shareholders General Meeting on 30 April 2009.
ANNEX I (c) CASH FLOW STATEMENT CONSOLIDATED IFRS Unaudited First Quarter EUR million 2008 2009 Net income 89.9 99.1 Depreciation and amortization 34.0 36.8 Capital charges related to stock option plans 3.1 6.7 stock and bonus shares to non-current provisions (including employee benefits 2.5 2.8) Deferred taxes (6.1) 3.7 Loss (gain) from sale – (5.2) Minority interest and other (0.1) 3.5 Cash flow from operations 123.3 147.4 Changes in (64.5) 35.3 Working capital Cash flow 58, 8 182.7 generated (consumed) by operating activities Investments (68.1) (58.2) Disposals of property, plant and equipment 0.8 0.2 Acquisitions of various titles – participation, net of cash acquired 0.1 Impact of changes – Perimeter Net cash (67.2) (58.0) generated (consumed) by investing activities Increase (decrease) 47.5 47.3 Increases in debt capital 0.5 – Dividends paid – - Self control – - Net 48.0 47.3 Net cash generated (consumed) by financing activities Effect of exchange (106.3) 116.5 Increase (decrease) (66.7 ) 288.5 Net cash Bank overdrafts (4.2) at beginning of period Cash and cash equivalents 2401.5 2 404.7 beginning of period Bank overdrafts (0.8), end of period.

Apr

29

The Financial Forum Gold Crown discussed the crisis from all sides

227 CommentsUncategorizedApril 29th, 2009

With the participation of Minister of Finance Miroslav Kalousek, former Prime Minister Milos Zeman and other important guests to the Tuesday meeting at Top Hotel Prague IV. International Finance Forum Gold Crown. The Forum was held under the title “Effects of global crisis: It will be even worse?” and welcomed nearly 350 participants. He was the current economic situation and ways of economic difficulties caused by recession.

Already in the introductory words of the outgoing Finance Minister Miroslav Kalousek consider the fact that our economy is affected by a crisis already descended to the bottom. He said that under the standard analysis of the economy to reach the bottom of this year and for next year can be calculated with a very modest growth, about half a percent. State budget deficit this year should reach around 150 billion. In his view, we face not only the impacts of economic crises, but also the risks of political decisions. Particularly warned against protectionism in the international scale, which describe the path to hell. He stressed that on the contrary, in times of crisis, we need your neighbors and a willingness to cooperate with them and not harm you. Other risk seen in the rapid nepromyšlených regulation on financial markets. They may thus be more damage than a Great Depression. And reiterated its strong reservation on the threat of indebtedness of future generations to be dangerously spreading various forms, such as efforts to establish šrotovné.

The performance of the Minister Kalousek followed former Prime Minister Miloš Zeman. In the introduction, mentioned the issue of toxic assets, which recommends the need for co-regulation and the provision of loans. The crisis in his opinion will be more than one or two years. According to his words, is alarmed at the approach of the two main political bodies – the ODS and CSSD to resolve a crisis. Proposals for ODS under the lead to undermine the budget revenue proposals ČSSD contrary to undermine spending. Criticized the introduction of šrotovného. It is contrary to the nespotřebovávalo but invested. State should be from the state budget to finance business development. It is prepared enough projects in the field of transport, ecology or the restoration of monuments, which can be zafinancovat. Parties from both parts of the political spectrum should join and support these investments. According to him, not to reject state intervention, it is primarily the quality and nature of these interventions. The crisis is not just a threat, the crisis is, in his view, a new opportunity for all.

A leading economist prof. Milan Zeleny is focused on the need to promote free markets in crisis. The principle of free markets is that each party must guarantee the market value added in the form of profits. The market, which the parties only one hand, it is not free. Market regulation is necessary for the protection of market freedoms. Its essence is to protect market participants against threats of fraud, corruption, etc. unregulated or poorly regulated free market is a market that favors certain groups. The crisis was that the free market at prevailing market free. Better than the fight against the crisis and limit it to use the opportunity to clean the bid. Reminded in this connection the example of T. Bati, who refused to state intervention and managed through the global crisis on the 30th let alone the advice of his business. The Milan Green too in the economy rely on macroeconomic indicators, while the substance is in the micro-decisions, ie, where the specific form of supply and demand.

According to the CNB Bank Board member Paul Řežábka of the Czech economy is not so bad. We should not talk about crisis, but a recession. In the macro area by the State and the Central Bank should create economic stability. Descending phase of the economic cycle is natural, to remove it is utopian. The challenge is to create a stable country environment within the economic cycle. Crisis or a recession can not be removed but only mitigated. While the emergence of crisis nezklamali regulation, but the method of supervision. Also pointed out that the floating rate in the Czech currency is currently favorable for the economy and helping to dampen some of the effects of recession. Year 2009 will be to address the economic situation in the Czech Republic. Talk about rapid entry and other countries in the euro area raises the question of who in the growth of deficits and this step for the current situation of EU countries will be willing to pay.

Member of the Banking Council of the Slovak National Bank Ľudovít Odori talked about what the crisis taught us. Most of the measures is aimed at the earliest period, but few think the longer-term solutions. Short-term measures on the economy have little impact and does not address the fundamental problems. Among the countries of Central Europe are relatively large differences. Czech Republic and Slovakia are on quite well, has a serious crisis in Hungary, the situation is not easy in Poland. Reiterated that every crisis is an opportunity to change something, but instead of structural reforms governments offer incentive packages. If you live in Europe, should lead to better mutual communication and a common procedure in broad terms. He mentioned also that 84% of Slovaks is like to have a strong European currency rate. In terms of Slovaks, whose economy is that, like ours, the adoption of the euro was a positive step.

Prof.. Michal Mejstrik, director of the Institute of Economic Studies Faculty of Social Sciences, Charles University, said that the intervention and action by the government can not in any country or on a global scale to meet the expectations of the public added to them. Demonstrated to the world, inter alia, increasing unemployment and the progressive předluženost population. Incentive packages may block the necessary structural changes and innovations. Of the countries of Eastern region is that, in terms of debt, the best Czech Republic. According to the IMF, having regard to the overall decline in global GDP, not view the countries of Central and Eastern Europe good. And in the late stages of a recession continue to experience difficulties and it seems to need even in the Czech Republic.

Petr Zahradnik, Director of the Office of the EU the Czech Savings Bank, his performances focused on protikrizová policy measures in the context of the crisis. He mentioned that the current crisis is significantly different from all previous. Within the EU there are also delays the impact on the Czech Republic. Czech Republic is one of the few countries, which from a statistical point of view the crisis has not affected too. Within the EU have seen an unprecedented period in terms of rescue packages in the publication of 50% of the annual GDP of the European Union. Czech Republic is one of the few countries that support this, given the stability of the financial market, do not need. Comprehensive document for the future, according to Petr Zahradník economic plan economic recovery EU. The basis is the emphasis on fiscal restraint, which loudly advocated as Czech Republic president.

The Financial Forum also spoke Johann Ertl, Executive Director of Raiffeisen Bausparkasse Vienna. He reminded that the current crisis in the mortgage crisis, which erupted two years ago in the USA. After the experience with the securitization of mortgage loans should apply the principle that loans can not be transmitted to other creditors. The building savings concentrated in central Europe. This savings is accompanied by the caution, which holds the crisis in check. Unlike mortgages, these loans are provided in domestic currency.

Miroslav Zamecnik, economic consultant Boston Venture Central Europe spoke about how to get out of debt trap. This applies to both businesses and the State. Everything is taken at the government’s package was adopted in the belief that the economy will decline slightly and stability at the turn of the year. The longer it will last recession, the more care will be given to public finances. As regards companies, many countries adopted amendments to insolvency legislation. It is one of the ways that it is possible to consolidate the business. Individual Position bank creditors against debtors is often up. Always and everywhere, when debtors are unable to pay, should start co-operative banks negotiations with the debtor prior to insolvency. Without a legislative solution, consisting of a protection against creditors in the future will be difficult to maintain the solvency of firms and to overcome the recession.

Lubor Žalman, CEO Raiffeisenbank, is devoted to one of the very issue discussed, the lending companies. Banks rise to concerns about the care and concern about the risk of lack of capital. Long-term funding is a problem in the future and not just for us. The economic crisis in its view, lead to lower demand for loans and increase bad loans. Government bonds yields compete with credits, a State wants to issue bonds until the end of 40 billion. For the banks it’s tough competition. Prosperity that we have experienced in recent years, never nezažijeme. Actually back to normal times. Loans to grow even as the capital. Outlook is such that the banks will fight among themselves a good credit more than at any time in the past. I promise, said the conclusion that the loans will be!

The issue of insolvency in the forum said Radek Laštovička Director Coface Czech. He said that in the years 2007 to 2009 occurred in the world to drop in GDP of 4.5%. Dissemination of insolvency has been the world globalize and distribute in the middle of last year. Since the beginning of this year hit insolvency and large economy in Europe, which had an effect on the insolvency of our companies. Least affected telecommunications companies, most automotive industry. The loss of payment discipline, we have the largest crisis after the Second World War. We are expecting at the beginning of this year, a large increase in insolvency, even reached four times compared to 2008. In his remarks pointed out that important to the health of companies is how they can care for their claims. Firms, for such cases should have contingency plans.

Jaroslav Hanak, 1 Vice-President of the Confederation of Industry of the Czech Republic, expressed the belief that at present concerning the crisis of confidence. Its impact will be great. When the boom, nesplácely with huge debts and resources consumed. You now missing. Warned the government resigning and coming to nerozhazovala money business. Despite the decline in production with entrepreneurs seeking to preserve jobs. Companies can help např.rychlejší VAT. Responsibly should be especially State Farm, which holds companies belatedly. The main problem is financing. Banks to hear the requirements of companies. Occasionally praised the government for promoting education, which really help businesses. In the future would need to be flexible to promote the Labor Code. Reiterated that entrepreneurs need almost vital euro and advocated the need šrotovného. Each of us should take responsibility, government, banks and everyone else.

The business approach to the crisis and spoke Karel Havlicek, Vice-President Association of Small and medium-sized enterprises CR. This crisis, according to him I get that it work. It depends on the communication with customers, employees, with managers who provide and manage the production, has not only the problems, but looking for solutions. Cushions, which sets the state, are important, but it is another time and increasing the role of associations, unions and other business entities. Their views should be respected more. Regarding the loans, the banks should be promptly communicate and negotiate in advance the conditions and parameters of loans.

In a panel discussion on particular topics presented a number of those present, among them such as Ludek Niedermayer of Deloitte Czech Republic, Jan Bures of the Postal Savings Bank, Petr Koblic of the Prague Stock Exchange, František Klufa, Financial Arbiter Czech Republic, Jiří Černý of TPCA Czech, Jan Mladek from Fontes Rerum, Paul Sehnal of SP Group, Vojtěch Lukas, President of the Association of Czech Building Savings Banks, Ales Michl of Raiffeisenbank, Jiří Moser from PricewaterhouseCoopers Czech Republic.

Apr

29

Banks that survive, will be less profitable

5 CommentsUncategorizedApril 29th, 2009

Some central bankers and politicians, especially in the U.S., promote the complete separation of investment banking from retail. And even if we do not ultimately, global banks are likely in some countries face more stringent restrictions, for which cross-border operations will be less attractive.

Some future trends are already evident. First, profits are reduced. According to the analysis of Citigroup from 2003 to 2007 ranged return on capital for European banks between 18 and 23 per cent. In the middle of the 90 years it was 12 – 15 percent. This change reflects, in particular, greater lending – the ratio of debt to equity of European banks has increased from an average of 24 in 1995 to 39 in 2007. This trend, however, now turns.

Banks will also have in their balances to keep more assets, plus a longer period. This change will further reduce the profitability.

The crisis also underlined the importance for banks as a stable source of funds deposits. Many banks in recent years stepped up efforts to attract more deposits from retail clients in an effort to reduce its dependence on expensive and hardly predictable interbank market.

But, as in developed countries interest rates are starting to close to zero, it will be increasingly expensive for banks to offer clients attractive enough interest.

In contrast with the dramatically improved margins on mortgages and other loans. Some institutions risk the possibility of termination, such as Morgan Stanley, once a model example of a classic old investment bank on Wall Street, therefore, began to vote on its new point of view, hybrid forms of funds from clients.

Regardless of the chosen strategy, however, in the austere environment and what comes, most banks will have to accede to reduce costs. But redundancy or moving jobs abroad may be politically difficult – particularly for banks, which now received assistance from their governments.

Pressure to reduce costs should moreover as soon as there is a partial stabilization of the sector, lead to further consolidation. However, large domestic mergers may have problems with it in order to be green from the institutions that are already on edge from the limited competition in the market.

Cross-border mergers may be more difficult to turn feasible, at least until the regulators establish reliable plans for the rescue of multinational banking colossus.

And even if regulators do not require the allocation of such colossus into smaller pieces, large banks are under pressure from its investors to give up plans for global expansion.

Banks bulk changes tactics. For the savings you get less interest – read here

Banks are certain credit quality real estate – read here

The current struggle for survival of Citigroup, once considered to be the prototype of a global financial supermarket, underscores the problems faced by banks, which seek to be “all for all”.

In the new environment that is created, and so there is room for different business-models. Commercial and investment banks are likely to focus on services to corporate clients and the processing of large volumes of transactions. They will also subscribe for issues of securities and to offer advice on mergers and acquisitions.

The banking industry is now essentially enters the era, when his performance more consistent with economic growth of countries in which individual institutions operate. Some banks may achieve slightly better results due to the fact that they are well kept.

But at least during the time when investors and regulators will remember the current crisis should be any bank, which consistently generates above-average profits, considered as a suspect, than to be celebrated and appreciated.

TWILIGHT OF FINANCIAL supermarket. The U.S. giant Citigroup’s fight for survival underscores the problems facing the banks, which seek to be “all for all”.

Apr

29

COMPANY: Nepoucitelní levaci and pravaci

4 CommentsUncategorizedApril 29th, 2009

According to the latest electoral preferences is another victory on the road working people with all the consequences. It will be followed by a permanent increase in social benefits, subsidies, šrotovného, furniture, ledničkovného and jiného.Ale If you want to give the thousand crowns for washing machines and refrigerators ČEZ, then nothing against it, their profits nachytračené little help in a crisis. But other measures should be limited to a period of crisis or to live again, that in the last years of socialist government in pětiprocentním economic growth that was ten per cent of the unemployed and the state budget deficit of around one hundred billion almost every year!
Here I asked if someone explained povolanější Socialists, the difference between government debt (ie state budget) and debt státu.Oni is happy and assigned both assimilated. I lay, I consider that the debt is the debt of state enterprises, municipalities and other organizations, which may in some cases guaranteed by the government, probably with a guarantee of their property. But it must pay the following businesses and organizations, not the government of the state budget. To address those socanů what question the fact that the coalition government managed to reduce the budget deficit to 20 billion, and emphasize that State debt just exceeded one trillion. Stupid journalists is that even encourages, this would explain why that?

I do not know where I saw the headline that the CSSD will propose an increase in the birth to 20 tisíc.Už now three per cent are born population (Roma) maybe eight percent of the 100 thousand births and the situation appears to be so that for fifteen years, most of them unemployed. Instead, the state supported properly working parents who lead their children to education and responsibility for themselves, going to support CSSD lazy, and there will be a similar Muslim community in France, where its výrostci ignite the car. And be careful with nadáváním to racists, and I know Roma who maka have ordered the family, but it is certain that this increase in the birth abuse the others. You would be better to cut taxes to working parents, increased child allowances (no social security benefits!), To introduce contributions to the housing, etc., but I did not support maladjusted people and their birth rate at any cost. But part, which authorized the CSSD, there is no price high enough for profitable positions for themselves, especially when others will pay! Well, if you managed to Standa …

So we are slowly Hungarian way, there is demonstrates the savings the new Prime Minister, as if life could take on debt to infinity. Our war against “unfair” reforms operate rozkradenými hundreds of billions, so why should the poor have now tightened belts? Have you nepřiznají that is primarily rozkradli their former comrades. The robbery, however, does not entitle us to, we condemned their children and grandchildren to pay our debts, the debts that will have to pay a future government. And the government debt increased mainly due to the governments of the CSSD, which from 220 billion in 1998 increased to 780 billion in 2006. This, comrades and friends, neokecáte nothing!

In addition to these nepoučitelných left here but we also nepoučitelné right tutany. They advocate for change in “fair” patnáctiprocentní flat income tax. Nothing I would not be against it at the time a prosperous economy, where more zoom in the more advanced parts of the EU (it is I have nedožiju) and when the income gap will be smaller, but will play a smaller role. These beetles Pytlíci never nepochopí that the addition of a few thousands of the richest, who are almost nothing, could rile other meat, after which he wants to understand the reforms. They behave just like the French aristocracy before the revolution, as the Russian nobility before VŘSR or stupid part of the Czech “buržoasie” before the war. This was divení, that the mob wants a fairer share of their work and more dignified life. Tlustý do not understand that to promote reform is most needed, which follows not. Most of the best recorders extravagant left stupid part right. But quit with a little optimizmu: When we survived Standards, as well as wasteful of life “consolidation” in the direction of the CSSD, but further damage lost years!

Apr

28

IMF: deficit / GDP Italy rises to 5.4% in 2009 to 5.9% in 2010

71 CommentsUncategorizedApril 28th, 2009

IMF: deficit / GDP Italy rises to 5.4% in 2009 to 5.9% in 2010 Debt / GDP expected to 115.3% and 121.1% next year (Il Sole 24 Ore Radiocor) – Washington, 21 Apr – Public Accounts in sharp decline in Italy due to the combined effect of the economic crisis and fiscal package launched to combat the recession according to the latest IMF estimates, as contained in the ‘World Economic Outlook’ spring, the deficit / GDP in line with a general trend in Europe is expected to rise 5.4% this year and to 5.9% in 2010 from 2.7% in 2008 (1.5% in 2007). For the debt-GDP estimation and ‘to a worsening of 115.3% in 2009 and 121.1% in 2010 from 105.8% in 2008 (103.5% in 2007). On budgetary policy, the Fund points out that governments around the world, with the worsening economic crisis and increasing the limits of monetary policy, have made use of fiscal policy to support demand. In addition to letting act in Europe, the automatic stabilizers, have been under extensive package of economic support in the full effects will be felt in 2009 and 2010. However, notes the report of the Fund, public deficits have already begun to grow ‘in 2008, with an overall increase in the advanced economies, more than 2 percentage points. Are also rising levels of debt because of the support to the banking sector and in some countries the scope for fiscal maneuver is further limited by the development of their yields on government bonds, put under pressure from fears about sustainability ‘long period of operations as’ extraordinary. The incentive plans are “at marginal or zero in Greece, Italy and Portugal – the report – all countries with a deficit close to 3% in 2008 and which have a high public debt or a high risk country.” Those countries, however, that have sufficient space for maneuver “must prepare to launch new support measures as necessary to accompany the recovery” and in any case, “public budgets, such as financial systems” globally “through a difficult phase of transition for the next five years. ” After the jump this year and predicted that high levels are maintained in 2010, the deficit “should be recorded on a sustainable trajectory, especially in view of the threat posed by population pressure on spending.” In general, governments pledged to tackle the crisis, highlights the ‘WEO’, must find a delicate balance between the need ‘to implement support measures in the short term, ensuring the sustainability’ medium-term and preserving its credibility ‘on the markets. Even assuming acquired a consolidation of the post-crisis, the IMF continues, “the fiscal outlook of advanced economies are causing serious concern, especially taking into account the pressures from aging populations.” In the baseline scenario, the aggregate budget deficit of advanced economies is expected to return to 4% for 2014, but, again, the public debt in the meantime would be increased from 75% of total GDP in 2008 to nearly 110% in 2014. The potential risks to the base case are different and if you were even partly, into practice, to pay would be the countries most ‘vulnerable, and that means’ those who have saved banks or firms at the expense of public debt or left explode government spending in the years of strong tax revenues.

Apr

28

The excesses of gambling

4 CommentsUncategorizedApril 28th, 2009

The greed and materialism have been serious accusations in the current economic crisis. However, the effects arising from the Christianization of our society continue to be felt.

In the middle of Lent, a great Australian company betting the Tabcorp, has announced that they do not want to interrupt the work of the bets even for Good Friday in the two most populated states of Australia, Victoria and New South Wales.

According to an article published March 17 in the newspaper Herald Sun of Melbourne, the director of Tabcorp, Robert Nason, said that this fall in an attempt to obtain permission to conduct such races in Australia including Good Friday.

While bettors this year have not been able to focus on local races, in fact, the initiative of Tabcorp will enable them to do so on races taking place abroad.

The news has attracted wide disapproval by the Churches. Bishop Christopher Prowse, Auxiliary Catholic in Melbourne, has written the following day accusing the all’Herald Sun Tabcorp not take account of the religion of the majority of Australians.

The data shows that last year, the State of Victoria, the Catholic Church alone has seen a participation of more than 250,000 people at a religious service on Good Friday.

“Gambling is already inflicting a serious blow to interpersonal relationships in families and communities,” added Monsignor Prowse. “Do not let consumerism will ruin one of the few days of sacredness and reflection remained in our calendar.”

The propensity of Australians gambling had already been the subject of alarm. The residents of Victoria, during the financial year ending 30 June 2008, have lost 2.6 billion Australian dollars (1.4 billion) just on poker machines, according to the Age newspaper on 7 March.

Astronomical gains

The article quoted Charles Livingstone, of the department of health at the University of Monash, who was astonished to discover that some centers were able to earn more than 270,000 Australian dollars (145,000 euros) a year for each machine.

Previously, January 29, the Daily Telegraph newspaper had reported that last year the betting in the State of New South Wales have pointed to 500 million Australian dollars (268 million euros) on the previous year. This increase followed a rise in donations from the federal government to citizens as part of a package of support to the economy.

Also in many other countries there are concerns associated with high levels of gambling. In Canada, the phenomenon reaches a turnover of about 8.7 billion Canadian dollars (5.3 billion euros) annually, according to an article published by the National Post newspaper on 1 November.

The author of the article, Robert Fulford, has highlighted the problems that beset those who play heavy and weaknesses that are exploited both by the game that the government, both with large gains.

In recent years, the bettors are faced to the source of temptation that is the online game, which can easily be accessed from home.

Internet

The world dell’azzardo on the Internet has been examined in a study conducted by Robert T. Wood and Robert J. Williams, both professors at the University of Lethbridge, nell’Alberta (Canada). The report published in January, is titled “Internet Gambling: Prevalence, Patterns, Problems and Policy Options.”

The gambling on the Internet – is explained in the essay – is a novelty for now and only 3% of Canadians exercise this option, compared with 92% who will take part in lotteries or 33.9%, which makes use of electronic machines Playground.

Surveys show that Canadian players playing on the Internet, as well as those from around the world, identifying the availability 24 hours a day, the main advantages of the game online, according to the study.

In October 2008 there were 2002 open Internet sites dedicated to gambling, which is owned by 520 companies. The number is less than 2500 sites registered in October 2006 due to a market consolidation that has occurred in recent years.

Revenues are difficult to determine, notes the study. However cites data from the Global Betting and Gaming Consultants estimate that the turnover of gambling online in 600 million Canadian dollars (366 million euros) in 1998, 5.6 billion (3.4 billion euros) in 2003 and 16.6 billion (more than 10 billion euros) in 2008. Overall, the proceeds of the game on-line in 2007 would amount to about 4% -5% of the market dell’azzardo.

The pace of growth of the game on the Internet has seen a slowdown in 2007 due to the prohibition of this type of betting in the United States. However, according to the study, estimates still a strong long-term growth through the expansion of the Internet.

In Canada, provincial governments have interpreted the law so as to enable them to lawfully manage a gaming site and to limit the user only to residents in the province, says the study.

Problem players

An interesting finding of this research is that, according to Wood and Williams, the players online have a propensity to 3 or 4 times higher than those not on-line players to become problematic.

Those who have problems with the game is usually played on the Internet, and this is true both in Canada and internationally, the authors note.

The study also states that it is almost impossible to effectively ban the game online. This statement is then used as an argument in support of its legalization, because it is better that this practice emerges and is legally regulated and controlled, which among others would ensure greater protection for players.

However, the authors identify several issues with the game on-line.

First, an important part of gaming sites on-line presents unsatisfactory levels of responsibility in business practices and games. Moreover, it is not clear how to ensure that these sites will adjust the minimum standards for the sector.

Returning to the fact that a significant proportion of revenues for the online game comes from players problematic, Wood and Williams argue that it is “ethically regrettable that the gains come in disproportionately by the most vulnerable segments of the population, especially in cases where the Government is the principal operator and / or beneficiary. ”

The legalization of Internet gaming would also increase its legitimacy and its availability, which would promote both the game that the game problem.

A further problem is that children playing on the Internet. The ability for sites to prevent this phenomenon, the study observes, seems to be limited due to the legal availability of credit cards and debit card for minors.

Expanding

Apart from the problems, the spread of the online game seems to be unstoppable. In Britain, one company, Ladbrokes, alone manages about 150,000 transactions daily on-line, according to a report published February 3 in the Financial Times.

The data cited by reporting estimates of turnover on the game on the Internet higher than those of the Canadian study.

According to the Global Betting and Gaming Consultants, based in the Isle of Man, the newspaper reported, the hazard worldwide generate 370 billion dollars (280 billion) in revenues – the amount that remains in the hands operators after paying winnings -, of which 17 billion dollars (13 billion) arising from the game online.

In contrast to Great Britain, which has decided to give the green light to this new form of gambling, some European countries such as Germany oppose the legalization of betting on the Internet.

According to the article, the European Union, however, is exerting pressure on countries that open their markets, and on the World Trade Organization in relation to restrictions imposed in the United States.

On 1 April, the Corriere della Sera published the latest information on online poker, the game more popular on the Internet in Italy, that, in the first three months of 2009, the Italians have pointed a total of 463.4 million euro.

If this tendency to play on-line continues to grow, with all the problems that entails, in the coming years could be serious repercussions, with heavy costs for the families involved. The need to rediscover the virtues of prudence and temperance is essential, therefore, not only for the economy as a whole but also for the often neglected issue of gambling.

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The Financial Forum Gold Crown discussed the crisis from all sides

Banks that survive, will be less profitable

COMPANY: Nepoucitelní levaci and pravaci

IMF: deficit / GDP Italy rises to 5.4% in 2009 to 5.9% in 2010

The excesses of gambling

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