Freeserve Reports Increased Losses Ahead Of Sale To Wanadoo

Britain’s leading internet company, Freeserve, reported increased losses in its interim results released today. Pre-tax losses for the 12-week period to the 11 November fell to £20.5m, compared to £3.6m for the same period last year.

Increased investment was to blame as the group revealed the full extent of its problems as it prepares to be taken over by French rival Wanadoo (see Freeserve Sold To Wanadoo). The group has stakes in web communications group Telepost, car sales site FSmotorist and online share dealing operation, StockAcademy, which together notched up losses of £1.4m.

Turnover was on the increase however, rising to £15.6m, a more than fourfold increase on the same quarter last year. Over 2 million people actively use the group’s ISP, an increase of 87,000 compared to the previous quarter, and it heads the unmetered access market, with 338,000 active registered users on its two packages. The group is set to unveil its Anytime package in the new year, allowing users unmetered access at all times (see BT Unveils FRIACO-based Unmetered Access Package).

John Pluthero, chief executive officer of Freeserve, said: “The combination of Freeserve with Wanadoo will create new opportunities and further accelerate the development of our business.”

Freeserve: 0870 9090666