Netia books 32.0% revenue growth despite falling user base

12 Nov 2012

Polish internet service provider (ISP) Netia has reported total revenues of PLN521.07 million (USD157.88 million) for Q3 2012, up 32.0% year-on-year, boosted by the completion of its dual acquisition of Crowley Data and Telefonia Dialog in Q4 2011. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 43.6% compared to the year-ago period to PLN148.43 million, with an EBITDA margin of 28.5% (up 2.3 percentage points y-o-y). Net profits fell to PLN10.04 million from PLN24.66 million on the back of greater debt in the wake of the company’s recent acquisitions.

Greater price competition, particularly in the lower-end of the market and multi-play offers from cablecos have led to a decline in subscriber numbers, resulting in Netia revising its revenue generating units (RGUs) guidance for the full year down to 2.65 million. The telco reported a total of 2.734 million RGUs for the period under review, compared to 2.785 million in the previous quarter. Broadband subscriptions fell to 888,698 from 903,937 in Q2 2012, whilst total fixed voice users (including WiMAX voice) dropped by 2.1% quarter-on-quarter to 1.678 million. Pay-TV meanwhile continued to see positive growth, with the operator recording 72,805 subscribers, up from 71,274 three months earlier. In the wireless segment, Netia noted a slight dip in voice and data users to 62,043 (-0.8% q-o-q) and 32,758 (-2.0%) respectively. Netia has announced that it will utilise its mobile virtual network operator (MVNO) agreements with P4 and Polkomtel to package fixed and mobile services into ‘attractively priced convergent bundles.’

Poland, Netia