Q1 Netia results affected by intense competition on the Polish telecoms market

Netia has published its financial report for Q1 2013. This indicates that there was a 10% year-on-year reduction in the total revenues of the company, to PLN 490.7m. The bulk of the revenue consists of sales of telecommunications services, which fell by 10%, to PLN 488.2m. This reflected a 13% reduction, to PLN 215.4m, in direct voice revenues, associated, in turn, with falling numbers of voice subscribers and a decline in the amount of WLR services provided. During the same period the adjusted EBITDA increased by 7% year on year, to PLN 142m and the company’s net profit came to PLN 13.1m, whereas in Q1 2012 it made a net loss of PLN 9.8m.

On 31 March 2013 the number of RGUs was 5.9% lower than that of last year: 2.638 million units. This reflected a reduction in the number of fixed voice services and also a loss of broadband subscribers. Netia claims that the latter is mainly a consequence of the intense competition on the Polish telecommunications market. The company plans to continue to defend the price of its shares and maintain the number of RGUs. In March 2013 it announced an offer to buy back a proportion of its shares listed on the Warsaw Stock Exchange. A price of PLN 8.00 per share was established. The shares represent up to 4.15% of Netia’s capital, and the offer expires on 22 May 2013.

Consolidated quarterly value (PLN m) and growth rate (%) of Netia revenues, Q1 2012-Q1 2013
Netia, 2013
Revenues (PLN m) Growth rate (y-o-y) RGUs (m)
Q1 2012 544.3 35.7% 2.79
Q2 1012 536.5 35.4% 2.79
Q3 2012 521.1 32.0% 2.73
Q4 2012 519.5 31.7% 2.69
Q1 2013 490.7 -10.9% 2.64