Tiscali posts first half results; completes Pipex purchase

14 Sep 2007

Italian broadband provider Tiscali, which operates in Italy and the UK, has posted results for the first half of 2007. Revenues for the half-year were EUR393.1 million (USD546.2 million), an increase of 24% year-on-year. The firm earned a net profit of EUR22.4 million, compared with a net loss of EUR74.2 for 1H2006. However, the profit included a one-off EUR100 million net capital gain from the disposal of Tiscali’s German and Dutch operations in February and June respectively. Between December 2006 and June 2007, the company reduced its overall debt from EUR397.2 million to EUR251.1 million.

In its home Italian market, Tiscali added 68,000 ADSL subscribers in the six months to 30 June 2007, taking its total to 500,000, of which 300,000 were connected via the company’s own unbundled network, which now comprises 486 exchanges covering 38% of Italian households. Tiscali reported 124,000 double-play (phone and broadband) customers, and 500,000 dial-up users. The Italian market accounted for EUR130.1 million in revenues in 1H2007, or 33% of the group’s total.

Tiscali’s UK subsidiary earned revenues of EUR253.2 million in the first half of 2007, an increase year-on-year of 23%, while EBITDA improved to EUR36 million from EUR30 million. 110,000 ADSL subscribers were signed up in the half, taking the total to 1.55 million at 30 June. There were 494,000 unbundled customers at 30 June 2007, up 41% on a year earlier. Tiscali UK has 800 unbundling sites covering 55% of UK households. It reported 330,000 dial-up customers.

In other news, Tiscali UK has announced the completion of its acquisition of the broadband and voice division of Pipex Communication for GBP210 million (USD420 million) less deductions of around GBP20 million.

Italy, United Kingdom, Tiscali, Tiscali UK