Poland's TPSA 2Q Net Profit +41%, Beats Forecasts
WARSAW -(Dow Jones)- Telekomunikacja Polska, Poland's largest telecommunications operator, Wednesday said second-quarter consolidated net profit rose 41% from a year ago as higher revenue in the mobile segment offset a fall in its fixed-line business.
The company, which is 47.5% owned by France Telecom, also upped its full-year revenue guidance to flat, from a previously forecast 1% fall.
Yearly revenue growth might be expected from 2009, said TPSA chief executive Maciej Witucki Wednesday, though he cautioned that much depends on the regulatory environment.
Group net profit for the second quarter rose to 698 million zlotys ($339.2 million) in the second quarter from PLN495 million a year earlier.
The figure beat the average forecast of PLN623 million in a Dow Jones Newswires poll of seven analysts.
The company reported second quarter group revenue of PLN4.52 billion, up 0.3% from a year ago, and a touch above analysts' average forecast of PLN4.51 billion.
TPSA said first-half revenue rose 1.1% to PLN9.05 billion, while net profit rose 36% to PLN1.38 billion. Analysts expected TPSA to post six-month net profit of PLN1.1 billion, on revenue of PLN9.04 billion.
The company reiterated its gross operating margin forecast of between 42% and 44% and planed investment of between 14% to 16% of sales.
TPSA said it booked a PLN56 million gain from a sale of telephone directory publisher Ditel. It also booked a PLN91 million gain from a revaluation of its financial assets.
Its gross operating margin for the six-month period was 43.6%, up from 41.4% in 2007 and within the company's guidance range of 42%-44%.
"We find the updated FY goal ambitious," said brokerage BZ WBK in a note, though it noted that the strong first-half performance results primarily from a very low base comparison. It also said TPSA receives no support from fixed line, mobile penetration is "uninspiring," competition is increasing "and the broadband segment still remains immaterial."
In addition, second-quarter earnings before interest, taxes, depreciation and amortization, or Ebitda, "looks disastrous," said BZ WBK equity analyst Pawel Puchalski.
Puchalski said that implied second-quarter Ebitda calculated on the basis of six-month fixed-line revenue of PLN5.26 billion and 43.9% gross operating margin, points to PLN2.31 billion Ebitda for the period.
When compared with first-quarter fixed-line Ebitda of PLN1.19 billion, that implies second-quarter Ebitda at PLN1.12 billion. "That's a 5.6% quarterly fall," Puchalski said.
The mobile segment again provided the bulk of sales growth, as net revenue rose 11% on the year to PLN3.93 billion in the first half of the year. That compares with a 12% annual decline in fixed-line revenue, to PLN 3.47 billion.
TPSA mobile arm Centertel had 13.9 million subscribers at the end of June, up 6.5% on year.
TPSA data transmission revenue rose by 10% in the first six month, to PLN1.22 billion. For the same period, broadband revenue rose 16% to PLN701 million,
Broadband subscribers rose by 21%, to 2.33 million.
At 0739 GMT, TPSA shares were up 3.3% at PLN23.26, compared to 1.6% rise in WIG20 blue-chip index
-By Malgorzata Halaba; Dow Jones Newswires; +4822 528-67-87 malgorzata.halaba@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 30th July 2008
