Tiscali Shareholders’ Meeting approves 2005 accounts

Cagliari, 18th May 2006 - Tiscali Shareholders’ Meeting, held today in Cagliari, has approved the annual accounts for the year ending 31 December 2005, confirming the figures approved by the Board of Directors on 30 March 2006.

2005 consolidated results show a significant improvement in market share, revenues and profitability.

In summary:

• Revenue growth: EUR 736.2 million, +12% YoY: acceleration of growth in UK, the Netherlands and Italy
• ULL ADSL subscribers’ growth: 4.7 million active users, of which 1.7 million ADSL users, +682,000 new customers in FY05. Over 360,000 unbundled lines (ULL), doubled compared to 2004.
• Profitability improvement: FY Gross Operating Result (EBITDA) at EUR 117.1 million (16% on revenues), +51% YoY
• Net result strong improvement: Net loss at EUR 12.8 million, compared to FY04 net Loss of EUR 134.2 million
  

FY05 was a very meaningful year for the Tiscali Group: the implementation of the Group’s strategic plan, aimed at focusing in the countries with the highest potential of value creation and at the implementation of the unbundling network infrastructure in the key countries, led to a strong growth in terms of ADSL users, revenues and profitability.

Such growth trend accelerated in the first quarter of 2006, with an increase of around 211 thousands ADSL customers (over 1.9 million total ADSL customers of which 435.000 were unbundled).

FY05 Group’s revenues stood at EUR 736.2 million, up 12% compared to FY04 result (EUR 655.1 million).  This increase was mainly due to the strong growth of ADSL users (+66%) and, consequently, of access revenues(+14%) with ADSL revenues growing by 54%. The concentration on key countries brought about an optimization of the infrastructural resources and a more efficient management. Such dynamics drove the meaningful revenue growth also in the other line of business (business services +21%, media and VAS +17%).

ADSL net additions in 2005 were over 682,000, bringing ADSL customers as of 31 December 2005 to over 1.7 million (+66% compared to 31 December 2004), of which over 360,000 received direct access through the Group’s ULL network, doubled versus 31st December 2004. The evolution of ADSL customers was mainly driven by the growth in the UK and Italy.

To read more, click on Press Release (pdf)