Terra Lycos logs firm loss

First-half results reflect part of cost of Lycos buy-up

By EMILIANO DE PABLOS

MADRID -- Terra Lycos, the Internet venture owned by Spanish telco giant Telefonica, posted a first-half net loss of 390 million euros ($339.3 million) on revenue of $310.2 million.

These figures suggest that the company has to travel a long and winding road to reach break-even.

First-half results reflect part of the cost of Terra's buy-up of Lycos, a deal closed in October, plus losses at the new combo.

Before the merger, Terra saw losses of $145.8 million in the first half of last year.

Facing continuing rumors that his job may be on the line, Terra Lycos president Joaquim Agut has introduced severe cost cutting and aims to hike company revs through access and subscription services. These accounted for 35% of Terra Lycos' revenue in the first half of this year.