By Jo Best, 9 August 2004 14:15
NEWS ISP Tiscali has decided to dramatically cut its overheads and sell up some of its overseas operations in order to meet its financial obligations.
The company has €250m of bonds due for repayment by July and with its losses deepening, Tiscali has decided to sell off its operations in countries where they're underperforming, including Austria, the Czech Republic, Denmark and Spain.
The ISP has already shed its arms in Norway, Sweden, Switzerland and South Africa - the latter having hit trouble over antitrust issues - and the sale of the ISP's assets in four more countries will leave it with a presence in its core markets of the Benelux countries, France, Germany, Italy and the UK, which make up the lion's share of its revenues.
As well as cutting its overheads by 15 per cent in the coming year, it will also be selling off €25m worth of assets to meet its financial obligations.
Tiscali will now focus on pushing broadband subscriptions in its remaining markets. The ISP made a pre-tax loss for the second quarter of this year of €65.5m, up from €56.3m on the corresponding period in 2003, despite a 26 per cent quarter-on-quarter rise in revenues.
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