TP Group reports consolidated revenues of PLN 3.68bn in Q3 2011

2011-11-04



TP Group (major components of which include are TP SA and PTK Centertel, operators of Orange in Poland) ended Q3 2011 with consolidated revenues equaling PLN 3.68bn (€0.85bn), 3.8% down on a yearly basis (results adjusted due to the deconsolidation of Emitel). Restated EBIDTA accounted for PLN 1.4bn (€0.32bn), which had 38.1% of share in total revenue in the reviewed period. Meanwhile, net profit accounted for PLN 376m (€86.5m), compared to PLN -748m (€ -187.3m) in Q3 2010, which was adjusted, among other reasons, for gains of the disposal of Emitel.

Selected financial indicators of TP Group (PLN m), Q3 2010 - Q3 2011

	Q3 2010*	Q3 2011	Change (y-o-y)
Revenue	3,824	3,679	-3.8%
Restated EBIDTA**	1,457	1,402	-3.8%
Restated EBIDTA** (as a % of revenue)	38.1%	38.1%	0.0p.p.
EBIDTA	396	1,402	254%
Net profit	-748	376	n/a

* adjusted for deconsolidation of Emitel from Q3 2010
** adjusted for a PLN 1.2bn gained on disposal of Emitel, increase in provision for European Comission by PLN 0.46bn in Q2 2011 and PLN 1.1bn impact of revision of the provision for the DPTG dispute recorded in Q3 2010
Source: TP Group, 2011

Mobile segment uplifts the results

TP Group generated revenues from mobile segments amounting to PLN 1,943m (€447.1m) in Q3 2011, which translates into a year-on-year growth of 0.2%. The total number of customers increased by 3.3%, with 6.9 million post-paid subscribers and 7.6 million pre-paid customers registered at the end of Q3 2011. This growth was reflected in the number of mobile broadband access which rose from 487,000 in Q3 2010 to 691,000 in Q3 2011. EBIDTA margin in the mobile segment equaled 34.1% of revenue in Q3 2011, marking a growth by 4.8 p.p. year on year.

Selected mobile indicators of TP Group, Q3 2010 - Q3 2011

	Q3 2010	Q3 2011	Change (y-o-y)
Revenues (PLN bn)	1.94	1.95	0.2%
Number of total customers (million)	14.1	14.6	3.3%
Number of post-paid customers (million)	6.83	6.97	2.1%
Number of pre-paid customers (million)	7.31	7.64	4.5%
Number of mobile broadband access ('000)	478	691	44.6%
EBIDTA margin (as a % of revenue)	29.3	34.1	4.8p.p.

Source: TP Group, 2011

Fixed-line segment on the decline

The group’s revenues in the fixed-line segment accounted for PLN 2bn (€460.5m) in Q3 2011 (result adjusted for the deconsolidation of Emitel) against PLN 2.14bn (€536.2m) in Q3 2010. Number of TP’s retail fixed lines reported a decrease of 10.9% to 5.8 million in the third quarter of the current year. At the same time, the number of TV customers rose by 23.8% reaching figure of 615,000. Fixed-line EBIDTA margin fell to 36.9% of revenue in Q3 2011 from 41.9% in Q3 2010.

The group’s estimates its value share in the Polish fixed-line voice services market in Q3 2011 at 66.7%, compared with 69.2% held in the corresponding period of the prior year.

Selected fixed-line indicators of TP Group, Q3 2010 - Q3 2011

	Q3 2010	Q3 2011	Change (y-o-y)
Revenue pro-forma* (PLN million)	2.14	2.00	-6.6%
Number of retail fixed lines** ('million)	6.55	5.84	-10.9%
Number of retail broadband accesses ('million)	2.27	2.33	2.8%
Number of TV customers ('000)	497	615	23.8%
Restated*** EBIDTA margin (as a % of revenue)	41.9	36.9	-5.0p.p.

* adjusted for deconsolidation of Emitel from Q3 2010
** including WLR and Orange WLL
*** ** adjusted for a PLN 1.2bn gained on disposal of Emitel, increase in provision for European Comission by PLN 0.46bn in Q2 2011 and PLN 1.1bn impact of revision of the provision for the DPTG dispute recorded in Q3 2010
Source: TP Group, 2011