TPSA 1H results strong, but future ‘tough’

President of Polish telco Telekomunikacja Polska (TP SA), Marek Jozefiak has announced a strong set of financial results for the first half of 2006, but has warned that recent changes to the regulatory environment will endanger future revenues. For the six months ended 30 June 2006, TP SA reported a 1.8% increase in turnover to PLN9.2 billion, of which PLN6 billion was generated by fixed line operations (down 5.6% compared to the first half of 2005) and PLN3.58 million (up 18.5%) by its wireless operations. Net income for the six month period was PLN1.02, while CAPEX amounted to PLN1.17 billion. According to Jozefiak, the greatest challenge facing his company are regulatory changes; since the start of the year the Electronic Telecommunications Authority (UKE) has issued decisions of bitstream access, reference interconnect offers, wholesale line rental and local loop unbundling which will all materially effect TP SA’s business.