French internet service provider (ISP) Wanadoo has vowed to pull itself further out of debt this year.

The company aims to produce positive core earnings (Earnings before interest, tax, depreciation and amortisation) for the first time this year.

The company's core loss to 64m euro in 2001 from 66m euros the previous year.

But operating losses widened to 153m euros from a 129m euros a year earlier.

"This is significantly better than expected," said Kai Kaufmann, internet analyst for Dresdner Kleinwort Wasserstein in London.

Wanadoo, Europe's third largest ISP reiterated its priority to push development of broadband and subscription-based internet services in 2002 to compensate for the slump in online advertising.

Wanadoo expended its client's base by two million in 2001 primarily through the acquisition of the UK's Freeserve.

Wanadoo shares were virtually unchanged at 5.6 euros, steady in the face of a 1.25% decline in the wider European tech index