Original URL: http://www.theregister.co.uk/2002/05/16/tiscali_breakeven_in_q1/

Tiscali breakeven in Q1

So?

By Tim Richardson

Posted in Media, 16th May 2002 12:32 GMT

Tiscali reckons it's taken yet another step towards its master plan to become a major force among ISPs in Europe.

Yesterday it reported that it reached breakeven in the first quarter of the year with EBITDA (earnings before interest etc) topping E1 million.

Total revenues in the quarter were E195.2 million - up 78 per cent compared to Q1 last year.

Internet access revenues - which account for 70 per cent of total sales - grew by a massive 93 per cent, from E71.2 million in Q1 2001 to E137.6 million in the first three months of 2002.

This was down to, in part, a growth in users and traffic plus the acquisition of 85,000 broadband subscribers throughout Europe.

Portal revenues were just a smidgen under E20 million with just under half coming from advertising.

In a statement the company said: "This important target [reaching EBITDA breakeven] was reached thanks to sustained turnover growth and the decisive action taken by the management last year in the form of an incisive cost-cutting strategy and structural and organisational rationalisation."

For the UK, that "decisive action" was the culling of around 300 jobs following the merger of LineOne, LibertySurf and WorldOnline.

Tiscali has also spent a fortune rebranding under the single name as part of its drive for market share.

However, according to the latest stats from Oftel Tiscali only has 2 per cent market share in the UK - way, way, way behind the likes of Freeserve, BTopenworld and AOL UK. ®

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