Tiscali to focus on UK, Italy; plans net profit from 2008

Wednesday 11 October 2006 | 11:54 CET | News
Tiscali has announced plans to narrow its focus to the UK and Italian markets and post a net profit by 2008. In a business plan for the coming five years, the company said it aims to move from being a simple ISP to an operator with its own infrastructure offering IP services. In the two focus countries, it already has unbundled local loop networks covering at least 30 percent of the population. It expects to spend EUR 740 million over the next five years completing the network infrastructure and preparing for a broader product offering. It is developing IPTV via its recent takeover of UK provider Homechoice and also testing WiMAX and fixed-mobile convergence products. Based on financial factors and talks with mobile network operators, Tiscali expects to take a decision by the end of the year on a fixed-mobile offer. Tiscali expects current cash, cash flow and asset disposals to fund the business plan and help reduce debt in the next year to 1.2 times EBITDA, from 2.4 currently. It is also in neogtiations with Italian bank lenders on better borrowing terms.

The group's financial targets for the coming years include growing sales 20 percent to over EUR 1.4 billion in 2010, improving the EBITDA margin to 26 percent from 14 percent over the same period and reaching a net profit and positive cash flow from 2008. The subscriber base is expected to reach at least 3.5 million in 2010, including 3 million ADSL users, 2 million on unbundled lines and 500,000 triple-play customers. that compares to 3.0 million currently, excluding Tiscali Netherlands which is being sold to KPN.

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Categories: Internet
Companies: Tiscali
Countries: Western Europe
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