Tiscali has slumped back into the red. The news comes only three months after the company had revealed that it had reached its breakeven point. Q2 revenues fell E20 million compared with Q1 in 2002. Tiscali blamed the fall in revenues on a reduction in the number of users in France and Germany. The pan European ISP stressed that the fall in revenues was merely a blip and will not affect future growth or potential profitability.
Despite slipping back into the red, revenues for Q2 actually increased by 16% to E172.5 million compared with E148.9 million for Q2 2001.
Tiscali expects to generate revenues of E800 million in this financial year. This figure is not as high as the E1 billion in revenues the company was expecting to make earlier this year. The company also stated that it needs to undertake further rationalization measures and efficiency improvements in order to deliver a positive EBITDA figure for 2002.