Netia presents poor third quarter results

APA - Austria Presse Agentur
16-11-2006, 11:44

Warsaw (Puls Biznesu) – Bad times for Netia telecom are not over yet.

Warsaw (Puls Biznesu) – Bad times for Netia telecom are not over yet.

In the third quarter, Netia had PLN 17.8m (EUR 4.7m) of net income. The result is good but without one time events it would be PLN 23m of net loss, Deutsche Bank estimates. This is much below the analysts’ expectations. The same concerns EBITDA which would amount to PLN 54m instead of PLN 94.7m. The one-time non-cash income of PLN 51.2m was generated due to concession payments from El-Net. Netia had PLN 230.5m of sales, or the same as in the same period of last year. Investors did not like the news and the stock fell yesterday.

“The situation is poor and it will get even worse because of the increasing loss of P4, the new mobile operator”, Dorota Puchlew from BDM PKO BP said.

The fourth quarter should resemble the third one. Netia will probably have a net loss while sales will stay unchanged and amount to PLN 870-895m.

“The prices for services among operators keep falling and the margins follow”, John Eastick, Netia CFO said.

The company will also lower its investment which will be ‘substantially lower’ than PLN 475m planned before.

(PLN 1 = EUR 0.262)

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Podpis: APA - Austria Presse Agentur

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