Polish national PTO, Telekomunikacja Polska (TPSA), has reported net earnings of PLN314 million (USD81 million) for the second quarter of 2003, up from a net loss of PLN52 million a year ago, but lower than the PLN349 million expected by analysts. The telco attributed the return to profit to a number of cost-cutting programmes undertaken during the last twelve months, as well as favourable exchange rates and rising earnings at its mobile telephony arm Centertel. It went on to say that the results improved less than forecast as the ongoing restructuring and job cuts still needed time to have their desired effect. Chief executive Roger de Bazelaire maintained that the company would meet its targets for the end of 2003. Servicing costs of TPSA’s PLN16 billion foreign debt were cut by 8% during the quarter, thanks to the appreciation of the zloty against the dollar, while Centertel reported an operating profit of PLN275 million for the first half of the year, up from 11 million.