It reported a fourth-quarter net loss of 1.67bn euros ($1.80bn), compared with a net loss of 93m euros ($100m), on revenues of 153.7m euros ($165.3m), down from 166m euros ($178.4m) in the same quarter in 2001. For the year to December 31, it reported a net loss of 2.00bn euros ($2.15bn), compared with a net loss of 566.3m euros ($608.8m), on revenue down 10.3% at $621.8m euros ($668.5m), from 693.5m euros ($745.5m) in 2001.
The figures include a 857m euros ($921.8m) write-down of goodwill, 81% of which was due to the acquisition of Lycos, and the remainder due to other acquisitions. Added to this is a further 453m euros ($487.5m) write-down to revert a tax credit.
Terra Lycos was formed after Terra Networks SA paid $12.5bn for Lycos. It is currently the largest access provider in Spain and South America, and is the fourth largest portal in the United States. However, Lycos has been hit particularly hard by the downturn in online advertising, and has been a drag on Terra’s bottom line for the past two years.
Terra Lycos is 39% controlled by Spain’s incumbent carrier, Telefonica SA, and the cleaning of its balance sheet with the 1.43bn euros ($1.53bn) write-down, has led to analyst speculation that Telefonica might want buy back its former ISP division, given its 1.75bn euros ($1.88bn) cash reserves and almost zero debt. However, Telefonica has repeatedly denied any such intention.
Terra Lycos also reported that as of the end of December 2002, it had a total of 3.1 million paying access, communications services and portal subscribers, an increase of 24% over the previous quarter, and 88% over 2001. It also ended the year with 378,000 ADSL customers, an increase of 11% over the previous quarter and 61% over 2001.
Source: Computerwire
