Freeserve’s share price plummets on expected poor results

Freeserve’s share price has plummeted after the company’s broker reported that the ISP’s 2001 losses could be more than expected.

LONDON (Brand Republic) - Freeserve’s share price has plummeted after the company’s broker reported that the ISP’s 2001 losses could be more than expected.

The Dixons-owned company saw its share price fall 24.5p to 339.5p during the first hour of trading today. Earlier in the week its share price dropped after it was revealed that talks with T-Online, the Deutsche Telekom-owned ISP, were not to be revived.

Broker Credit Suisse First Boston doubled its estimates for the company’s losses next year, resulting from the implementation of new technology and the cost of providing unmetered internet access. However, the broker said its revenue from e-commerce and advertising would increase and it still expected the company to be profitable by the end of 2003.

The news comes after LineOne said that, after September 30, it would no longer offer unmetered internet access because it was oversubscribed, and “unviable”.

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