Netia turnaround gains momentum

8 Nov 2013

Polish full service provider Netia has registered an 11.0% year-on-year drop in revenue for the nine months ended 30 September, although the telco’s long-term strategy is beginning to have a positive impact on the telco’s net earnings, which improved from losses of PLN38.94 million in 9M12 to PLN20.54 million. The telco has experienced steady declines in revenue generating units (RGUs) and turnover for more than a year in the midst of tough competition in the broadband market and the shrinking fixed telephony space. To cope with the changes to the market, Netia has looked to cut costs by focusing more heavily on services offered over its own network rather than through wholesale accesses, and is concentrating on revenue growth over subscriber expansion.

As a result of the telco’s strategy, EBITDA improved quarter-on-quarter for the first time in more than year, increasing to PLN144.12 million with a margin of 31.2% in Q3 2013 compared to PLN140.54 million and 29.4% in Q2 2013. Meanwhile, net losses improved from PLN9.25 million to PLN2.23 million. RGUs fell to 2.56 million at end-September from 2.59 million three months earlier. Broadband RGUs dipped to 854,165 on the back of declines in WiMAX, bitstream access and local loop unbundled (LLU) connections. Fixed voice telephony also saw a net drop in RGUs, falling by 31,547 to 1.52 million, despite a marginal q-o-q increase in voice-over-internet protocol (VoIP) subscriptions of 8.2% to 86,562.

Poland, Netia