Italian broadband company Tiscali SpA (TIS.MI) said Friday it first-half net loss widened by a factor of seven on the year, due to a EUR345 million capital loss booked after the sale of its U.K. assets.

The company posted a net loss of EUR402.9 million, compared with a EUR57.2 million loss in the first half of 2008.

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, therefore becoming the U.K.'s second-largest broadband player behind BT Group PLC (BT).

Tiscali's revenue in the first half fell 7.8% to EUR151.6 million, while core earnings grew 48% to EUR37.9 million.

In a statement, the Sardinia-based broadband operator said the company is working to deliver a new business plan by the fourth quarter, which will define the company's strategy after its debt reorganization and the disposal of its U.K. assets.

Following the U.K. sale, Tiscali has reached a framework deal for the restructuring of its debt that covers about EUR500 million of senior debt and includes an initial capital increase of up to EUR190 million, to be launched by year-end.

-By Giada Zampano, Dow Jones Newswires; +39 06 69766925; giada.zampano@dowjones.com

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