ISPs shuffle towards profitability

Telewest, T-Online see daylight

By Ron Coates, 13 May 2004 11:45

NEWS Telewest has announced it has slashed its losses - and Europe's biggest ISP, T-Online, has moved into profit with a little help from an accounting change.

The UK company cut its net losses back to £36m for the first quarter, down from the £187m it lost in the comparable period last year. Net losses were down to £7m from £25m.

Telewest continues to push up the subscriber numbers, with 51,000 more signing up for broadband in this quarter and another 12,000 household cable customers. Even better, it has boosted user revenue to a record £45.05 per month.

Total broadband customers are just under the half-million mark and the company claims to have cut household churn to one per cent.

T-Online has reported an actual net profit for its first quarter of €79.3m. In the first quarter of last year it was showing a €31.3m loss. However, a good chunk of the difference is due to the fact that the company has stopped writing down its goodwill, which was a €85.8m charge last year.

Its sales are up by 13 per cent at €488.8m and it pulled in 216,000 additional DSL customers.

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