Tiscali drops profit forecasts
August 11, 2008
The internet service provider (ISP), Tiscali had reduced its profit and revenue forecasts for the year. The ISP has also said it would review its business plan for the fourth quarter. They admitted they lost 37,000 broadband customers over the last three months.
The Tiscali group failed to get a buyer after they put themselves up for sale in March. They have predicted profits, before interest and financial charges, would be between €220 million and €230 million. This is in comparison to a previous estimate of €290 million.
Tiscali has also cut back its 2008 revenue target to between €1 billion and €1.1 billion from an estimate of €1.3 billion in November. They blame the changes on the weakness of the pound against the Euro.
The new targets will almost certainly force the groups’ management to look at what the company is worth as speculation is growing that offers will not meet its aspirations.
Tiscali had imposed a deadline of June 30 to finalise a bid, this deadline has been missed.
Vodafone had been showing an interest in Tiscali’s UK and Italian operations, they have since however withdrawn from the bid. Carphone Warehouse and BSkyB had both shown interest in the UK business but have both since withdrawn. Tiscali’s UK operation accounts for 69% of its overall revenues.
Tiscali said “higher competitive pressure” in the second quarter was to blame for the slowdown in growth compared with the first three months of the year.
In a statement Tiscali said “In view of the developments within the business environment and the strategic review process still underway, Tiscali’s Board of Directors intends to review the Business Plan in the fourth quarter of this year”.
Visit www.tiscali.co.uk for more information on the group.
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