Wanadoo posts first ever profit; beats expectations

3 Mar 2003

France Télécom’s internet arm Wanadoo has posted its first ever profit for 2002, thanks to an influx of new subscribers to its broadband offering and a series of cost control measures effected during the year. Wanadoo, which was not expected to turn a profit until 2003, boasted a net income of EUR30 million for 2002, compared with a loss of EUR193 million previously. Consolidated revenues for the fourth quarter reached EUR2.08 billion, up 33%, while EBITDA went from a loss of EUR64 million to a positive EUR90 million in the twelve-month period. Like many of its European rivals, Wanadoo witnessed a dramatic fall in its shares during the past twelve months, although it has not fared as badly as some. At the end of 2002 Wanadoo’s shares had dropped by around 25%, valuing the company at EUR6.7 billion, while Germany’s T-Online International and Spain’s Terra Networks witnessed drops of 48% and 54% respectively. The French ISP has put its positive 2002 results down to the increase in popularity of its high speed services as more people are attracted to the ability to send and store digital photos, download music and watch videos on the internet; the number of broadband subscribers almost tripled during the year, taking the total customer base to 8.5 million. Wanadoo operates in France, the UK and Spain and is also present in the Netherlands and Morocco.