T-Online doubles sales to £216 million
But posts losses after spell on acquisition trail
T-Online's share price went up 7 per cent yesterday on the news that its half-year sales had doubled (to £216 million). This despite the fact that its chief exec resigned last week and the company's suffered its first loss of £45 million. It made a £2 million profit last year. The losses came mostly from the cost of its acquisition programme.
Waitrose and Tesco are both planning Internet shopping sites in time for Christmas. Waitrose will launch its new service next month in a bid to keep up with Tesco, aiming at the corporate market and then a consumer service will be set up in a year's time. Tesco on the other hand is expanding into the Irish Republic and enlarging its range of goods available online. It claims to be taking £4 million worth of food online each week - half, it says, come from people that normally shop in competitors' stores.
Wanadoo - the Internet arm of France Telecom - has bought out the remaining 39 per cent of TV production company FIT Production for an unknown sum. The purchase comes two days after its float and shares went up 9 per cent on the news.
Carrefour - Europe's biggest retailer, apparently - is cutting its planned Internet investment programme by 40 per cent. Instead, it intends to go after partnerships. The company's chairman said it had to be "pragmatic" and share the risks rather than go for a majority shares in every e-commerce site. The budget has been cut from the original Eu1 billion (£600 million) to Eu600 to 700 million (£370 to £430 million). Shares went up a touch on the announcement.
Yahoo! Inc has completed its acquisition of group email communications outfit, eGroups Inc The acquisition is being accounted for as a pooling of interests. Yahoo! will exchange approximately 3,425,000 shares of Yahoo! common stock for all outstanding eGroups shares and options. Yahoo! expects to record a one-time charge of approximately $25 million in the third fiscal quarter of 2000, relating to expenses incurred in connection with the transaction.
America Online has acquired voice portal company, Quack.com. Details of the deal were not disclosed. Quack.com will be managed by AOL's Interactive Properties Group.
E-commerce sales have grown just over 5 per cent in the second quarter of this year (over the first half) to $5.5 billion (£3.8 billion), according to the US Commerce Department. Apparently, sports goods were particularly popular. That said, it still only accounts 0.68 per cent of total commerce. ®
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