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Barcelona (pte038/27.02.2003/15:12) - Spanish Internet portal Terra Lycos http://www.terralycos.com has reported a massive drop in 2002, with losses reaching 2.01 billion euros after minus 560m euros in the previous year.
The group attributes its poor results in part to depreciation of up to 857m euros resulting from the expensive purchase of Lycos in 2000.
Terra Network, a subsidiary of Telefonica (39 per cent), had purchased Lycos to break onto the US Internet market.
Last year's turnover was 622m euros, signifying a 10 per cent drop from the previous year. Earnings before interest, taxes, depreciation and amortisation fell by 48.3 per cent to 120m euros.
Much like its competitor AOL Time Warner, Terra Lycos is suffering from the touted bursting of the Internet bubble, as well as drastic cuts in the online advertising market.
By the end of 2002 Terra Lycos had 5.9 million registered users - 88 per cent more than in 2001. The number of ADSL customers grew by 62 per cent to 387,000.
Terra Lycos's parent company Telefonica also reported poor results in 2002, accumulating losses of 5.6 billion euros and seeing an 8.5 per cent drop in turnover to 28.4m euros.
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