Freeserve losses widen after investments sour

Freeserve has announced rapidly widening losses as it prepares for a Christmas rush and the £1.6bn takeover by French ISP Wanadoo.

The UK ISP's second quarter results saw revenues quadruple on the same quarter last year, up to £15.6m. However, figures were hit by having to write off £11.8m against bad investments. Freeserve's loss was £18.4m, compared to £13.5m in the three months to August. The company's operating loss fell from £14m to £6m in the same period, mainly due to halting its expensive advertising campaign. Last week Freeserve inked a deal with Wanadoo, majority owned by France Telecom, to merge the businesses in a deal valuing Freeserve at £1.6bn.