Tiscali has reported a 73% year-on-year increase in net losses for the year ended 31 December 2008, to EUR242.7 million (USD322.6 million). The Italian broadband operator, which also operates in the UK, said that the losses included EUR96.4 million in financial charges and EUR64.9 million in taxation. Revenue was up 11.4%, ending the year at EUR983.6 million. The company reported a 7.4% rise in revenue from its Italian operations to EUR313.5 million and a 12.3% increase from its UK business to EUR683.6 million. Average revenue per user (ARPU) for Italian customers rose to EUR30 per month in 2008, but fell to EUR28 for customers in the UK.
Tiscali ended 2008 with net debt totalling EUR601 million, down from EUR637 million a year earlier. The company has announced that it has reached a standstill agreement with its creditors until June 2009, giving the company time to negotiate a new financing plan. The deal anticipates EUR60 million of debt being converted to equity.
In a related story reported by TeleGeography in CommsUpdate today, Carphone Warehouse may place a bid to buy out Tiscali’s UK broadband operations after negotiations between Tiscali and BSkyB broke down.