Italian broadband company Tiscali SpA (TIS.MI) said late
Thursday its first-quarter net loss narrowed 54% on the year thanks
to lower restructuring and financial costs.
The company posted a net loss of EUR17.2 million compared with
the EUR37.5 million loss registered in the first quarter of
2008.
However, the company's revenue for the three months ended March
31 fell to EUR202.6 million from EUR269 a year ago, on a drop in
the client base of its U.K. unit and a weaker British pound against
the euro.
In a filing to the Italian stock exchange, the Sardinia-based
broadband operator also said the company is working on a new
business plan, which will be unveiled as soon as the binding
agreements on the company's debt reorganization and the disposal of
its U.K. assets are signed.
Earlier in May, Carphone Warehouse Group PLC (CPW.LN) agreed to
buy the U.K. assets of Tiscali for an enterprise value of GBP255.5
million, including GBP20 million in debt, thus becoming the U.K.'s
second-largest broadband player behind BT Group PLC (BT). The deal
is subject to regulatory approvals and the completion of the
company's debt renegotiation process.
In that regard, "we foresee that the agreements with senior
lenders, which currently are being defined, will be finalized and
communicated to the market shortly," the company said.
Earlier this year, Tiscali had suspended payments on its
long-term debt, which amounts to some EUR500 million, with Intesa
Sanpaolo (ISP.MI) and JPMorgan Chase & Co. (JPM) holding 70% of
it.
Before the deal with Carphone, Tiscali pulled out of talks with
British Sky Broadcasting Group PLC (BSY) over its U.K. operations
and was forced to seek better conditions from creditors.
Tiscali will use the proceeds from its U.K. assets sale and a
capital increase of up to EUR210 million to restructure its debt,
which stood at EUR629.8 million as of March 31. That compares with
a EUR601.1 million debt as of Dec. 31, 2008.
Exchange Web site: www.borsaitaliana.it
-By Enza Tedesco, Dow Jones Newswires;
enza.tedesco@dowjones.com
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