Ad losses deepen QXL agony

LOSSES at former dotcom wonder stock QXL Ricardo are still running at more than 10 times sales. The online auction group unveiled results today showing turnover has fallen 15% in the past three months.

Chief executive Mark Zaleski said revenue had been hit by a decline in online advertising but shrugged off concerns about QXL's viability. Zaleski pointed to a 20% rise in the number of items sold on its European network of auction sites as evidence that the operation was working and said some of its country units will break even for the first time in the current quarter.

However, the group is not expected to be profitable as a whole until 2004 and has a maximum £24.8m in remaining financing. Shares in the once £2.5bn-valued company founded by journalist Tim Jackson were down 0.1p at 0.8p, compared with a 744p peak.

In the latest quarter to 31 March, cash burn was £4.3m, or some £50,000 a day. The pre-tax loss for the quarter shrank to £14.2m from £18.6m, on sales down to £1.2m. Losses for the year to 31 March narrowed to £39.9m from £143.1m but sales fell by two-thirds to £5.4m from £15.1m.