TP arrests broadband decline, wireless suffers

25 Jul 2012

Telekomunikacja Polska (TP), which operates under the Orange Poland banner, has announced a 1.1% year-on-year slide in revenues for Q2 2012, with slight declines in both the fixed and wireless segments. Total revenues for the three month period were PLN3.67 billion (USD1.05 billion), compared to PLN3.71 billion a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) were PLN1.295 billion, whilst EBITDA margin was 35.3% for the period under review.

Revenues from fixed lines declined by 0.4% y-o-y, an improvement on the 5.4% decline noted in Q1 2012 showing that the company’s focus on improving its broadband offerings is beginning to gain traction. Whilst the number of broadband subscribers decreased slightly quarter-on-quarter from 2.348 million to 2.344 million, there was a 34.8% q-o-q jump in triple-play subscriptions. Meanwhile, average revenue per user (ARPU) from broadband subscribers (including voice-over-internet protocol [VoIP] and IPTV) was PLN54.5 for the period, marking a decrease from the corresponding period of 2011 but an increase from PLN53.4 in Q1 2012, reversing the trend of declining broadband ARPU.

The wireless segment also saw a decline in revenues, although this was attributed to the reduction in mobile termination rates (MTRs): in July 2011 voice MTRs were lowered from PLN0.1677 per minute to PL0.152 per minute, whilst the SMS MTR was lowered to PLN0.07, before being dropped again in January 2012 to PLN0.06. Consequently, mobile income dropped to PLN1.95 billion in Q1 2012, from PLN1.97 billion a year earlier. Orange Poland claimed 14.757 million wireless subscribers, with 2.574 million subscribers using smartphones. Further, the company noted 848,000 users subscribing to its dedicated wireless internet services, up from 645,000 a year earlier.