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Polish telecom Netia expects revenue decline to ease to 7.5% y/y in 2014 [IntelliNews - Weekly Reports](IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Poland's biggest alternative fixed-line telecom Netia (and a major ISP) has presented its forecasts for 2014 and at the same time medium-term strategic financial goals, which it explained was due to the plan of its president to step down. The revenue is expected to fall to PLN 1,735mn in 2014 from PLN 1,876mn last year (when it fell by 12% compared to the 2012 level); adjusted EBITDA is projected at PLN 505mn vs. PLN 551mn, respectively, while adjusted EBITDA margin - at 29.1% vs. 29.4%. Adjusted EBIT is to decline to PLN 75mn from PLN 111mn in 2013. Capital investments (excl. M&A and integration capex) is projected at PLN 200mn vs. last year's PLN 240mn, while adjusted operating free cash flow (Adj. OpFCF) - at PLN 305mn vs. PLN 311mn. The firm's management said it expects 2014 to be a year of consolidation with a focus on providing the foundations for the newly established B2B and B2C Business Units, dedicated to best support the needs of business and residential customers, respectively, to deliver accelerating performance in future periods. While it expects to continue growth in on-net services with broadband, TV and B2B services all registering growth, the short-term priority will be to add additional product features, improve processes and reduce the cost base in order to sell more effectively in subsequent years. The group's medium-term strategic financial guidance, which was put under review in November of 2013, has now been withdrawn. The management explained that it will await the results of the next mid-term perspective planning round together with the company's supervisory board and which will be undertaken with key input from the two new, more autonomous B2B and B2C Business Units before deciding on whether to once again issue such medium-term guidance. The operator also announced that its president Miroslaw Godlewski, in agreement with the supervisory board, decided to stand-down from his position leading the company's management board by no later than Aug 31 of 2014 (after serving more than seven years at the post). Godlewski has contractually agreed to remain in his position while the supervisory board search for a suitable replacement and will stand down from the management board on Aug 31 of 2014 or earlier if his replacement is able to take over his responsibilities at an earlier date. (c) 2014 Emerging Markets Direct Media Holdings LLC Provided by Syndigate.info, an Albawaba.com company |