French internet service provider Wanadoo is set to show a net profit for 2002, after reporting a 33% rise in full-year sales.

And the firm, which is 73.7% owned by France Telecom, predicted strong growth this year.

It also said subscriber levels had risen 41% to 8.53 million by the end of last year, beating its own expectations by 500,000 users.

This growth was fed by Wanadoo's two business units, which pursued their development throughout 2002 Wanadoo

"The company is profitable at the level of net results," outgoing chief executive Nicolas Dufourcq said.

Wanadoo, forecast core earnings last year, which analysts expected to be around 68m euros ($72.0m; �44.8m), would be at the high end of expectations.

Earning would triple in 2003, the firm added.

Wanadoo owns a slew of ISPs, internet portals and e-commerce businesses in France, Britain and Spain, having grown through taking over firms including Freeserve in the UK and eresMas in Spain.

Online growth

The company's turnover of 2.08bn euros also beat analysts' expectations.

Trade at Wanadoo's online businesses grew by 67%, with the more traditional telephone directory service seeing expansion of 4%.

"This growth was fed by Wanadoo's two business units, which pursued their development throughout 2002," Wanadoo said.

Wanadoo was set-up by France Telecom in 1996 and in 1999 began an acquisition spree in Europe during which it acquired ISPs in many major markets.