Digital switchover hits MP bottom line

20 May 2014

Polish triple-play provider Multimedia Polska (MP) has reported a 12% year-on-year slump in net profits to PLN12.628 million (USD4.13 million) for the three months ended 31 March 2014, as improvements in the makeup of the operator’s subscriber base failed to offset the long term impact of the switch over to digital TV, with MP registering a PLN4.277 million decrease in earnings from analogue TV compared to Q1 2013. The number of unique customers increased to 828,000 from 826,000 at end-2013, whilst MP booked net additions of 23,500 revenue generating units (RGUs), including 6,900 video, 12,800 broadband and 3,800 voice RGUs. The growth saw the number of RGUs per unique customer edge up to 1.88 from 1.86 in Q4 2013, as the number of double- and triple-play subscriptions increased to 298,000 and 129,000 respectively, from 293,000 and 127,000 in the previous quarter.

Meanwhile, the operator launched a mobile virtual network operator (MVNO) service in January 2014, and claimed to have signed up 5,500 users by the end of April, and it plans to expand its mobile portfolio by branching into mobile terminal sales. MP also added another string to its bow in April 2014, when it began trialling sales of electricity in selected locations. The operator also confirmed it is to undertake a public offering at the Warsaw Stock Exchange (WSE), which will consist of up to 49.2% of the company’s shares and is set to take place in Q2 2014.

Poland, Multimedia Polska