TP SA reveals its short-term strategy

2010-03-10

TP SA posted a 9% decline in sales revenues, to PLN 16.56bn (€4.16bn), in 2009, while net profit went down by 41% to PLN 1.28bn (€322m). The market is not expected to grow and only in 2011 is the company to show a rise in results, as Maciej Witucki, the group’s chairman, underlined.
In order to improve its performance, in 2010 TP SA intends to simplify its offer and reduce the number of its products. Moreover, the company plans to rebrand the TP SA brand as Orange. It will also cut the number of its points of sale by 10%. The new strategy also envisages limiting TP SA’s suppliers and reducing the IT systems used by the company. In accordance with an agreement with the Office of Electronic Communications (UKE), the operator will spend PLN 3bn (€754m) on 1.2 million Internet lines.
In the fixed-line telephony segment, TP SA intends to reduce the number of customers abandoning subscriptions by 50% in two years. In 2009, the company lost one million clients, i.e., 12% of its customers.
Moreover, TP SA will work on regaining by Orange, by the end of 2011, the position of the leading provider of mobile Internet access in Poland. It also aims to be a leading ISP in large cities in Poland.

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