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TP SA revenue declined in Q1, and further slump expected


2007-04-27

TP SA has announced that in the first quarter of 2007 the group as a whole earned more than PLN 4.4bn (€1.16bn) and made a profit of PLN 518m (€136.3m).
In comparison with the corresponding period of last year, net profit improved by 2.6%, but revenues declined by 2.7%. The figures fall short of those expected by the market, and analysts emphasise that this might be a sign of looming problems for the operator, caused by the increase in competition and liberalisation of the fixed-line telephony market.
Adverse events in Q1 2007 include the withdrawal of over 200,000 fixed-line subscribers, whereas in 2006 the average figure was 120,000 subscribers lost per quarter. The operator installed 57,000 new xDSL lines, and the quarterly average for 2006 was 150,000. In addition, PTK Centertel, the mobile operator owned by TP SA, has managed to attract 260,000 new clients, substantially fewer than the 400,000 forecast by analysts. TP SA’s ARPU in Q1 2007 was reduced by 13% year-on-year.


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