Present Status of Tiscali Broadband
In the end of March, Tiscali had published a report stating that it was hit by a loss of 242.7 million Euros for the year 2008. As a matter of fact, the loss had considerably widened from it 2007 toll of 65.3 million Euros. Tiscali has meanwhile categorized the losses as financing charges effectuating a loss of 96.4 million, and tax loss assets write down of 64.9 million Euros.
It also blames its acquisition of the Pipex broadband ISP in the UK for a loss of 42.1 million Euros. Meanwhile, it is also worth pondering over the fact that all was not going the wrong way for the UK ISP. In fact, last year it had a rise in its revenues of up to 11.4 percent to 983.6 million Euros last year, as it finished the year with a whomping 2.3 million ADSL customer base.
Out of the 2.3 million ADSL customers of Tiscali, 1.2 million used LLU services. This was the time when Tiscali had revealed of reaching a standstill deal with its lenders as it also negotiated a new financing as well as business plan. The above mentioned agreement culminated into the waiving of its bank payments and covenants on its long term debt. It also ensured that the debt of 60 million Euros was converted into equity.
Meanwhile, in Italy, the home market of Tiscali too its revenues saw a rise of 7.4 percent in 2008. This also said that the ADSL subscriber base of the ISP had then rose to 33,000 to a total of 586,000 last year. It is also worth mentioning here that out of this lot, 385,000 customers used unbundled services.
In the UK by this time, a revenue rise of 12.3 percent had taken the income to 683.6 million. This was besides, the customer base of Tiscali falling slightly over to 1,768 million over the year, as the number of unbundled users remained at 827,000 and the number of double-play customers at 819,000. Today, Tiscali’s future lies very much on its double play broadband offers in LLU areas, besides boosting its CRM platforms and customer service.
In the meantime, Tiscali should also see that the Pipex takeover is justified by further cost efficiencies, and also rationalize its product portfolio. This includes its IPTV service as well.
