Italy's Tiscali 1Q Net Loss Narrows, Revenue Falls

Italian broadband company Tiscali SpA (TIS.MI) said late Thursday its first-quarter net loss narrowed 54% on the year thanks to lower restructuring and financial costs.

The company posted a net loss of EUR17.2 million compared with the EUR37.5 million loss registered in the first quarter of 2008.

However, the company's revenue for the three months ended March 31 fell to EUR202.6 million from EUR269 a year ago, on a drop in the client base of its U.K. unit and a weaker British pound against the euro.

In a filing to the Italian stock exchange, the Sardinia-based broadband operator also said the company is working on a new business plan, which will be unveiled as soon as the binding agreements on the company's debt reorganization and the disposal of its U.K. assets are signed.

Earlier 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, thus becoming the U.K.'s second-largest broadband player behind BT Group PLC (BT). The deal is subject to regulatory approvals and the completion of the company's debt renegotiation process.

In that regard, "we foresee that the agreements with senior lenders, which currently are being defined, will be finalized and communicated to the market shortly," the company said.

Earlier this year, Tiscali had suspended payments on its long-term debt, which amounts to some EUR500 million, with Intesa Sanpaolo (ISP.MI) and JPMorgan Chase & Co. (JPM) holding 70% of it.

Before the deal with Carphone, Tiscali pulled out of talks with British Sky Broadcasting Group PLC (BSY) over its U.K. operations and was forced to seek better conditions from creditors.

Tiscali will use the proceeds from its U.K. assets sale and a capital increase of up to EUR210 million to restructure its debt, which stood at EUR629.8 million as of March 31. That compares with a EUR601.1 million debt as of Dec. 31, 2008.

Exchange Web site: www.borsaitaliana.it

-By Enza Tedesco, Dow Jones Newswires; [e-mail]

Order free Annual Report for British Sky Broadcasting plc

Visit http://djnweurope.ar.wilink.com/?ticker=GB0001411924 or call [phone]

Order free Annual Report for BT Group PLC

Visit http://djnweurope.ar.wilink.com/?ticker=GB0030913577 or call [phone]

Order free Annual Report for Intesa Sanpaolo

Visit http://djnweurope.ar.wilink.com/?ticker=IT0000072618 or call [phone]