TP reports lacklustre 9M results

28 Oct 2009

Telekomunikacja Polska (TP) saw net profit almost halve to PLN1.03 billion (USD363.3 million) in the first nine months of 2009, on the back of a 7.6% fall in revenue to PLN12.55 billion. The company, which is backed by France Telecom, blamed increased competition and a harsher regulatory environment for the decline in sales. TP has been trying to shift its focus towards broadband internet and television services, and saw a 10.7% increase in broadband revenues during the nine month period ended 30 September 2009. However, fixed line revenues as a whole slipped by 3.9% to PLN7.48 billion while the mobile segment reported a decline of 8.7% to PLN5.86 billion. The latter was impacted by the regulatory reduction of mobile termination rates (MTRs) implemented by the regulator in March and July this year. As a result MTRs were halved compared to the same period of 2008.