Italian broadband operator Tiscali expects to post a net profit in 2008 and to generate a cash flow of over 650 million euros by 2012, a company statement said.
Tiscali's revenue by 2012 is forecast to reach 2.0 billion euros, while for 2008 the company plans a revenue of 1.3 billion euros.
Earnings before interest, tax, depreciation and amortization (EBITDA) are expected to increase to 30% of revenue in 2012 from 17% in 2007.
The figures come from Tiscali's business plan for the period 2008 to 2012.
The broadband operator plans to expand its presence in Italy and Britain and to implement investments of 1.0 billion euros over the period, of which 220 million euros will be invested in 2008 alone.
To simplify the group's structure, the board of directors gave a green light to the merger of Tiscali Italia SpA and Tiscali Services, a unit which provides IT services.
The company expects a net debt of 500 million euros in 2008, considering a 150-million-euro capital hike and its use in debt repayment.
