TP's Q3 sales fall; '09 growth prospects gloomy

29 Oct 2008

Former Polish fixed line incumbent TP SA sees little chance of sales growth next year after unfavourable regulatory changes that will also lead to a very weak overall telecoms market. The news came as the group reported a bigger than expected 2% fall in 3Q revenue after regulatory cuts in mobile fees hit growth at its wireless arm Orange Poland. ‘2009 will be a very weak year from the point of view of the whole Polish telecom market, which results from regulatory decisions,’ TP SA Chief Executive Maciej Witucki told reporters during a conference call. ‘Telecom business is not so vulnerable to economic fluctuations … In these circumstances there’s little chance of growth in our sales next year.’ TP SA’s 3Q revenue fell to PLN4.54 billion (USD1.5 billion) while net profit was PLN630 million. Sales at Orange Poland rose 8.3% after nine months to PLN6.43 billion, helping make up for a 4.1% decline in fixed line revenue to PLN7.85 billion.