Netia revises FY sales guidance on slow market growth

23 Aug 2012

Polish internet service provider (ISP) Netia has announced it generated revenue of PLN1.08 billion (USD332 million) in the first six months of 2012, an increase of 35% year-on-year, with Dialog Group and Crowley Data Poland, which were acquired by Netia in December 2011, contributing sales of PLN247.5 million and PLN45.7 million, respectively. Netia posted Q2 2012 revenue of PLN536.5 million, a fall of 1% over the previous quarter, but up 35% compared to 2Q11; the operator said it has cut its 2012 sales target from PLN2.185 million to PLN2.125 billion, due to ‘slow market growth and generally difficult trading conditions on the residential market’. Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) totalled PLN259 million for the first half of 2012, an increase of 36% year-on-year, and stood at PLN134.9 million for the second quarter of the year. Netia posted a net profit of PLN11.2 million for H1 2012 versus a net loss of PLN10.1 million in the year-ago period, while net profit for Q2 2012 was PLN21 million, compared to a net loss of PLN9.8 million in the previous quarter. Reported net profit for H1 and Q2 2012 included a non-cash gain of PLN21 million recorded due to the recognition of a deferred tax asset resulting from the intragroup sale of network assets from Dialog to Netia, while in H1 2011 the reported net loss included expenses of PLN58.3 million relating to the company’s corporate income tax for the year 2003.

Netia reported 2.785 million revenue generating units (RGUs) at the end of June 2012, compared to 2.752 million twelve months earlier, driven by broadband, TV and mobile services, which offset a fall in fixed voice customers. The company’s broadband subscriber base stood at 903,947 at the end of Q2 2012, up 3% from 877,044 a year earlier but down 1% from 912,408 at 31 March 2012, thanks to slow market growth and tougher price competition, particularly for lower-end offers. Netia now expects to end the year with 2.75 million RGUs, compared to its earlier guidance of 2.9 million.

Poland, Netia