Italian broadband operator Tiscali has reported a net loss of EUR402.9 million (USD576 million) for the six months ended 30 June 2009, compared with a EUR57.2 million loss in the first half of 2008. Tiscali attributed the decline to a EUR345 million capital loss as a result of the sale of its UK assets; in May Carphone Warehouse purchased the firm’s UK operations for GBP255.5 million (USD415.1 million), as well as taking on GBP20 million of company debt as part of the transaction. Revenues for 1H09 fell by 7.8% year-on-year, down to EUR151.6 million, while earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 34% to EUR48.4 million. The company claims that the capital loss encountered following the sale of the company’s UK unit has already been compensated for by a EUR630 million debt restructuring deal which included a three stage capital increase of up to EUR262 million. At the end of June 2009 the company had net debt of 505.8 million euros.
As a result of debt restructuring and the pending capital increase Ernst and Young has approved the company’s 1H09 financial release. As reported by CommsUpdate on 17 April 2009, the auditor refused to sign off on the company’s accounts for the full year 2008, casting doubts over the company’s ability to continue as a going concern and stating that the firm’s future relied on such a restructuring deal being secured.