Yeap, i am the co-founder and CEO of this company, a subsidiary of Free (the 2nd ISP here in france)
You are perfectly right, this server cost much more than the price offered to our customers. Just electricity is approx 0,80-90€ / month + credit card transaction fees + support + bandwidth + datacenter + PUE ...
We've sold 2000 servers in few hours, with no communication (nothing on our web site, no forum/tweeter/fb announcement), only an hidden link leaked on our IRC channel, in August (holidays here), an Friday (nobody put production on Friday), launched at lunch time.
This is a pure marketing research operation, made in order to have many new customer testing our services, servers, support and network.
We prefer to deliver an service for 1,99€ per month (and cost us 3 or 4€ per month and per customer) instead of spending thousands euros per day on Google Adwords for nothing. This operation cost much less than other traditional marketing rules and my conversion rate is 100% :-)

Regards,
Arnaud