TP SA pays $220m

2004-01-08

As Financial Times reports on 23 December 2003, TP SA paid back interests from its bonds issued in the Netherlands worth a cumulative total of $800m ahead of time. The transaction amounted to around $220m. According to the carrier's spokeswoman, Barbara Górska, cited by Reuters, costs of the transaction will have no influence on the company's 2003 net profit, however, TP SA's year-end financial expenses will increase by around PLN 830m, what will result in lowering the level of income tax paid by the company by more than PLN 230m. Over the next years TP SA might be obliged to pay tax from higher profits but, due to recent changes in the Polish fiscal law, its rate as of 1 January 2004 is lowered from 28% to 19%. Analysts estimate that due to this move, the Polish dominant operator may save up to PLN 75m.