TP SA reports 49% slide in 1H net profit

29 Jul 2009

Telekomunikacja Polska SA (TP SA) has reported a 49.1% drop in net profit for the six months ended 30 June 2009, as both fixed line and mobile revenue fell (by 2.5% and 6.5% respectively) on the back of regulatory changes, chiefly the 36% cut in mobile termination rates (MTRs) which became effective in March. TP SA chief executive Maciej Witucki also said he expected revenue to fall further in the second half of the year due to growing competition, a slowing economy and a contracting telephone market. Group net profit at the company, which is 47.5% owned by France Telecom, fell to PLN702 million (USD239.3 million) in the first half, from PLN1.38 billion in the same period a year ago. First half revenue of PLN8.5 billion was down 6.1% on the year, of which mobile operations generated PLN3.95 billion and fixed line PLN5.09 billion. Falling fixed line revenue was partially offset by data transmission revenue, up 6.7% on the year, to PLN1.3 billion, especially broadband internet revenue, which was up 13% year-on-year to PLN789 million.

Because of subscriber migration from fixed to mobile services, as well as price competition, TP SA saw the number of fixed line subscribers fall 11% year-on-year to 7.49 million at the end of June. Its total number of broadband accesses rose 10.1% to 2.56 million while mobile broadband accesses climbed 27.3% to 378,000. The number of wireless customers fell by almost 1% to 13.77 million, although the number of post-paid users rose by 10.9% to 6.45 million.

Poland, Orange Poland