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iin/swt/tls european dsl results

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    As we are kept in the dark in OZ we have to use other area figures and they are looking good.

    Tuesday August 12, 09:56 AM

    T-Online profits beat forecasts
    By Boris Groendahl


    FRANKFURT (Reuters) - Europe's largest Internet service provider T-Online says its customers are staying online longer despite a scorching summer, boosting its second-quarter profit above forecasts and lifting its shares.


    T-Online notched its eleventh straight quarter of growth with earnings before interest, tax, depreciation and amortisation (EBITDA) of 80 million euros, up from one million euros a year ago and beating the average forecast of 59 million euros in a Reuters poll.


    The strong first-half results, with sales reaching 894 million euros as use of its services increased and costs stabilised, enabled the company to raise its full-year EBITDA target to 250-300 million euros, up from 180-210 million euros.


    Shares in T-Online rose 3.6 percent to 9.93 euros by 0850 GMT, making it the second-biggest gainer on the DJ European tech index

    on Tuesday.


    "T-Online is a positive surprise," said a Frankfurt-based trader. "Many had expected worse results as, during summer time, people usually spend less time in front of their computers."


    NET LOSS NARROWS


    T-Online, owned 71.9 percent by Germany's dominant telecoms carrier Deutsche Telekom (Xetra: 555750.DE - news) , said its net loss for the quarter to June was 16 million euros, down from a loss of 46 million euros a year ago.


    T-Online users -- numbering 12.67 million in Europe by the end of June -- spent 2,747 minutes online per month on average over the first half of the year, almost 1,000 minutes more than they did last year, helping to increase profit margins.


    The margin in the second quarter improved further to 57.5 percent, up from 56 percent in the prior quarter, as the company made more efficient use of its network capacity and moved users to more lucrative high-speed connections.


    "The increased proportion of broadband customers and good capacity utilisation on the network made a positive contribution to this development," T-Online said in a statement.


    Sales were 449 million euros, up from 367 million a year ago and in line with the 450 million euros forecast in the Reuters poll.


    WEATHER WORRIES


    Its 12.67 million subscribers as of the end of the second quarter were up from 12.5 million at the end of the first quarter, with 3.2 million, or 25 percent, signed up to the higher-margin broadband service.


    T-Online and France's Wanadoo (Paris: FR0000124158 - news) , Europe's second biggest ISP, have seen subscription growth tail off slightly in the second quarter just as the sultry summer kicked in.


    Both firms have so far weathered the hottest summer in years but analysts believe it will catch up to them in the ensuing quarter, hurting new subscriptions and advertising sales.


    "The weather is definitely going to play a role in third-quarter results for all of these guys," one London-based analyst said.


    T-Online cut core losses at its non-German European operations, mainly in France and Spain, to nine million euros in the second quarter, down from 22 million a year ago as it cut costs, while its subscriber numbers there remained flat at 2.3 million.


    Shares in T-Online have risen 32 percent since its last quarterly report, making it one of the top two candidates, along with tyre-maker Continental , for a promotion to the German blue-chip index DAX (Xetra: ^GDAXI - news) in the next round of revisions in two weeks.


    T-Online ended the quarter with 3.9 billion euros in cash and fixed deposits.



 
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