French Internet service provider Wanadoo said today it achieved a first-half operating profit on a strong rise in sales and confirmed it would meet 2003 financial targets despite a slowdown in subscriber growth.
Wanadoo, Europe's second-largest Internet service provider (ISP) after Germany's T-Online, reported first-half operating income of €60 million compared to a loss of €4 million in the year-earlier period.
First-half sales leapt 34 per cent to €1.227 billion, barely beating analysts' expectations for sales of €1.226 billion.
The company, which was scheduled to release only its sales and subscriber figures for the period, said its earnings before interest, taxes, depreciation and amortisation (EBITDA) reached €109 million.
A Reuters poll of seven analysts predicted an EBITDA profit of €118 million. Wanadoo said a €10 million fine it paid the European Commission impacted its bottom line.
However, Wanadoo said it was confirming its financial targets for 2003 of revenue growth of 25 to 30 per cent, a tripling of consolidated EBITDA, and break-even EBITDA for Internet access, Web portals and e-commerce segments.
Rapid uptake of high-speed broadband Internet access has propelled Wanadoo into the black. With online advertising sales perking up too, investors have flocked back into the sector.