Cagliari-based internet communications company Tiscali has announced its fourth consecutive quarter of revenue growth for the three months to the end of March 2003, indicating a significant improvement in profitability. The group’s first quarter revenues stood at EUR212.5 million, up 9% on the same period of 2002, while EBITDA grew from EUR1 million to EUR15.6 million. Capital expenditure fell by 84% in the year to EUR23.9 million, leaving the company with cash resources of EUR314.6 million and a net debt of EUR158.7 million.
Tiscali has put its promising financial results down to strong growth in the broadband sector during the twelve month period. Its number of ADSL users more than tripled to 360,000, and is continuing to grow at a rate of around 11,000 new subscribers per week; by the end of April it could claim 400,000 users of the service. Access revenues contributed 71% of the total, with portal services accounting for 6%, corporate services 16% and voice operations 7%. The group has predicted revenue growth of over 20% for the full year 2003, an EBITDA margin of 7%, investments at 6% of revenues and ADSL customers to reach 700,000. It also said it hopes to achieve positive cash flow in the second half of the year.