TPSA profits boosted by strong wireless growth

4 Mar 2003

Polish PTO Telekomunikacja Polska SA (TP SA) [TPSA.SG] reported a 22.5% rise in net profit during 2002 on the back of a number of cost-cutting measures and strong growth at its mobile phone unit Centertel. The telco, which is majority owned by France Télécom and Polish company Kulczyk Holding, reported revenues of PLN18 billion for the year, up from PLN17.3 billion in 2001. Much of the increase was due to the strong performance of Centertel, Poland’s number three cellco, which reported a 60.9% growth in subscribers year-on-year to 4.48 million. TSPA’s fixed line business continues to be the group’s cash cow; although it experienced a 2% drop in turnover to PLN15.5 billion, it still controls 90% of the nation’s wirelines. Large scale cutbacks in staffing levels, from 60,120 employees at the end of 2001 to 44,383 twelve months later, helped reduce costs and contributed to a net profit of PLN840 million, up from PLN686 million the year before.