Netia wants to win 1m subscribers for broadband internet within three years. It does not exclude a merger with Play, the mobile operator. These plans were not welcome by the market. The stock dropped 4.9 percent to PLN 4.08. Analysts say that there is nothing new in the strategy. Today, the operator has about 100,000 clients for its broadband internet services. By winning 1m, Netia would become the biggest alternative internet operator. According to the company’s management, the market is scattered, there are over 4,000 providers today. Netia is going to spend PLN 700m (EUR 183.4m) within three years.
Dorota Puchlew, DM PKO BP analyst, believes that 1m clients is not very real.
“There are supposed to be 200,000 of them this year, double the number today, so the growth rate is not very big”, she said.
Michal Marczak, DI BRE Bank analyst, believes that the management has no idea what to do next and the forecasts are below expectations. Netia plans to have PLN 830-865m of sales this year against PLN 862m last year. EBITDA should amount to about PLN 130m against PLN 174m a year earlier. Net loss due to launching the broadband internet and WLR may amount to PLN 80m. The company promises net income in three years. In this time, it will spend PLN 285-300m.
(PLN 1 = EUR 0.262)