Tiscali reduced its fourth-quarter pretax loss as it cut costs and bought rivals to offset stagnating growth in new customers. Tiscali International saw a significant improvement in revenues in 4Q02, a sharp rise in EBITDA, while reducing dramatically the financial needs. In 2002 EBITDA rose to EUR 1 million compared to an EBITDA loss of 170.4 million in 2001. Full-year revenues of 2002 rose by 18% on the previous year to EUR 748.4 million. Internet access (both narrowband and broadband) remains the group's main revenue source, generating EUR 517.2 million-around 69% of total revenues. The 26% increase in internet access revenues vs. 2001 was mainly due to the expansion of narrowband services and growth in a number of the European countries in which Tiscali operates. Business revenues rose by 25% vs. 2001 to EUR 106.5 million. For 2003, the group aims to boost growth and profitability by increasing its ADSL user base, strengthening its competitive position in the narrowband market and further increasing the efficiency and profitability of all its business units. Tiscali expects revenues to grow by around 20% in 2003, and its EBITDA margin to reach at least 5-6%. The number of ADSL customers is forecast to rise to over 600,000 by the end of the year.
