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Losses at Europe's biggest ISP have increased tenfold, T-Online reported this morning.

Announcing its preliminary half-year figures ending June 30 the German giant reported pre-tax losses of E123.3 million (£75.8 million) compared to E11.7 million (£7.2 million) for the corresponding period last year.

The widening loss comes as revenues increased from E353 million (£217 million) in the H1 2000 to E539.3 million (£331.5 million) this year thanks to increased portal and access revenues.

Thomas Holtrop, CEO of T-Online International AG, said: "T-Online was able to show good improvement against the current market trend.

"With our combined business model access and portal we have taken the right direction on our road to profitability," he said.

T-Online has also increased its customer base by some three million over the same period boasting 9.2 million users at the end of June, with around 335,000 subscribers of its flat-rate broadband DSL service.

What's more, T-Online reports that demand for its DSL service is growing - something identified in a recent report by Merrill Lynch on the European ISP market.

It predicted that T-Online could sign up one million DSL customers by the end of the year, a figure which would account for around an impressive 12 per cent of its customer base. ®

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