Dixon shares soar on FreeServe bubble

Internet valuations soar to absurd new heights

Now we know the City is mad. UK consumer internet customers are worth more than £1,300 each –- according to the latest valuation of Dixons Stores Group. It is set to return to the FTSE 100 index of the UK’s biggest companies on the back of its extraordinary success with new ISP service FreeServe. Shares soared £690 million on news that the company signed up 510,000 users in its first month of service -- equivalent to £1,352.94 per (non-paying) customer. That’s an awful lot of ads to sell to justify that sort of premium UK Trade valuations for paying consumer Internet accounts used to come in at £180 each – these days £50 or £60 is nearer the mark.®

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