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Tiscali Q3: Continuing growth as focus narrows to UK and Italy |
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#1 |
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Join Date: Nov 2000
Posts: 953
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Tiscali Q3: Continuing growth as focus narrows to UK and Italy
Tiscali released their Q3 results last Friday. Top line revenues including mergers and acquisitions were up 31% year-on-year to €168.9 million; EBITDA more than doubled to €26.5 million and operating margin increased from 10% to 16% of revenues year-on-year.
Comment: The last three months have been very busy for Tiscali. In August Tiscali announced that it would be merging with Video Networks Ltd (VNL), operator of the HomeChoice Internet and TV over DSL service in the UK, in order to use VNL's content to launch triple-play services in December 2006. In September 2006, Tiscali sold its Dutch operations to KPN and, in line with its new strategy and business plan announced in October 2006, the company plans to sell its operations in Germany and the Czech Republic and focus on just two markets - Italy and the UK. In Q3, Tiscali UK generated 66% of group revenues, while Italy generated 31%. ADSL services generated the majority of revenues with a 72% increase year-on-year to €202 million in the UK and a 44% increase in Italy to €51.6 million. The merger with VNL in the UK generated €2.5 million revenues in Q3. Remarkably, Tiscali managed to generate growth in their voice revenues, which were up 32% to €78.4 million, for the first nine months of 2006 compared to the same period in 2005, which is something the majority of European incumbents and altnets have so far failed to do. Although Tiscali will generate a vast amount of cash from the sale of its Dutch, German and Czech operations which it can use to acquire/develop new service offerings in the UK and Italian markets, we wonder if this focus may be a bit too narrow. Tiscali believes that the UK and Italian markets have the greatest potential for value creation, and although this may be true, particularly for Italy, the Dutch operation, although a small and highly competitive market, was by far the most profitable for Tiscali and it was a surprise to see it go. Competition in the UK broadband space has also increased considerably over the last few months with mobile operators and resellers Orange, Vodafone and Carphone Warehouse all jumping on the bandwagon and it remains to be seen if Tiscali can manage to grow its existing 10% share of this market. http://www.ovum.com/news/euronews.asp?id=5096 Last edited by Peter We : 13-11-2006 at 13:02. |
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#2 |
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Join Date: Dec 2005
Location: Barnet, N London
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Does anybody remember Tiscali saying this in August? I thought the idea was a "big announcement" in November!
From that article, though, it looks as though the focus is more likely to be rolling out the existing services around the country than improving the one we already get... |
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#3 |
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Forum Member
Join Date: Nov 2000
Posts: 953
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I'm sure they said November and it looks like they are simply talking about extending the existing service. However, we will have to wait and see as they could do anything.
more here http://www.cbronline.com/article_new...B-FFC8BD8EC28E such as "The third quarter results show a growth of 160,000 broadband subscribers across Italy and the UK. In the UK, the total additions was 137,000 connections, of which 43,000 was due to the acquisition of Homechoice" |
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