Tough competition impacts Netia bottom line

Polish broadband provider Netia has booked revenues of PLN519.53 million (USD166.83 million) for the three months ended 31 December 2012 – its third consecutive quarter of declining income – whilst the group dropped to a net loss of PLN108.91 million from net profits of PLN10.04 million in Q3 2012. From a peak of PLN544.28 million in Q1 2012, Netia’s revenues slipped by 1.3% and 2.8% quarter-on-quarter, before slowing to a 0.3% dip for the period under review. The slide was caused by falling subscriber numbers, driven by intensifying price competition in the broadband market and continuing losses in the fixed voice segment. Netia claimed 2.688 million revenue generating units (RGUs) at end-2012, ahead of its guidance of 2.65 million. In light of the changes in the market towards aggressive pricing, Netia is focussing on on-network sales, particularly broadband and TV services. Earnings before interest, tax, depreciation and amortisation (EBITDA) were PLN54.08 million, with an EBITDA margin of 10.4% in Q4 2012, compared to PLN148.43 million and 28.5% in Q3 2012. Meanwhile, CAPEX for the period was PLN52.61 million, down 22% q-o-q.