Wanadoo Duzdoo With 30% Q3 Revenue Growth

22 October 2002

Wanadoo, Europe’s second largest ISP (after Deutsche Telekom’s T-Online), reported Monday third quarter revenue growth of 30%.

The increase, marginally below analysts’ expectations, saw income for the quarter to September 30 rise to €527 million ($513.74m; £331.99m), comparing year-on-year with €512.3m. Internet access subscription income rose 66% with 307,000 new subscribers, almost half of them for broadband services, while directory sales rose by 41%.

But France Telecom-owned Wanadoo with 7.1 million subscribers still lags T-Online both in terms of customer numbers and emergence from the red. The latter reported its first EBITDA (earnings before interest, tax depreciation and amortization) profit in August which Wanadoo is not expected to achieve before the year end at earliest.

Observers say that both European giants are eyeing their ailing rival, the Italian ISP Tiscali which despite a Q1 profit plunged again into the red in Q2 and will reportedly run out of cash by the year end. A bid by T-Online or Wanadoo is thought unlikely, however, due to the massive debt burdens of their respective telecoms parents.

Data sourced from: Financial Times; additional content by WARC staff