Page 67 - 2board23full
P. 67
The creation and release of provision for impaired receivables have been included in “Net provisions and impairment
loses” 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.
3.1.5 Concentration of credit risk
The Company is exposed to concentration risk attributed to the concentration of the trade receivables and cash balances
and held-to-maturity financial assets.
The Company has a high concentration of credit risk with respect to 2 domestic carriers (2011: 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 2 banks (2011: 3
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 3.1.4 for cash balances and held-to-maturity financial assets.
3.1.6 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 2012 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
Borrowings 95,636,509 95,487,319 285,590,816 332,941,378
Grant of rights fee payable 1,000,000 1,000,000 24,622,222 126,833,333
Trade and other payables 0 0
Total 30,660,113 0
127,296,622 96,487,319 310,213,038 459,774,711
At 31 December 2011 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
Borrowings 95,812,879 95,636,509 285,935,794 428,083,718
Grant of rights fee payable 1,000,000 1,000,000 10,622,222 141,833,333
Trade and other payables 0 0
Total 43,272,993 0
140,085,872 96,636,509 296,558,016 569,917,051
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.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares, use excess cash to repay its borrowings (subject to the termination
provisions of the respective loan agreements) or sell assets not pledged as security, to reduce debt.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 32 of 54
loses” 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.
3.1.5 Concentration of credit risk
The Company is exposed to concentration risk attributed to the concentration of the trade receivables and cash balances
and held-to-maturity financial assets.
The Company has a high concentration of credit risk with respect to 2 domestic carriers (2011: 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 2 banks (2011: 3
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 3.1.4 for cash balances and held-to-maturity financial assets.
3.1.6 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 2012 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
Borrowings 95,636,509 95,487,319 285,590,816 332,941,378
Grant of rights fee payable 1,000,000 1,000,000 24,622,222 126,833,333
Trade and other payables 0 0
Total 30,660,113 0
127,296,622 96,487,319 310,213,038 459,774,711
At 31 December 2011 Less than Between Between Over
1 year 1 & 2 years 2 & 5 years 5 years
Borrowings 95,812,879 95,636,509 285,935,794 428,083,718
Grant of rights fee payable 1,000,000 1,000,000 10,622,222 141,833,333
Trade and other payables 0 0
Total 43,272,993 0
140,085,872 96,636,509 296,558,016 569,917,051
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.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares, use excess cash to repay its borrowings (subject to the termination
provisions of the respective loan agreements) or sell assets not pledged as security, to reduce debt.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 32 of 54
