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Polish telecom Netia lowers 2014 revenue forecasts, ups CAPEX target [IntelliNews - Weekly Reports](IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Poland's biggest alternative fixed-line telecom Netia (and a major ISP) has lowered its full-year revenue guidance to PLN 1,675mn from PLN 1,735mn after its H1 of 2014. The firm admitted that the update is being made to reflect weaker than expected sales momentum in H1 of 2014: they fell by 11% y/y to PLN 856.5mn. Netia explained that decline in revenues was driven by a 6% y/y and a 2% sequential decline in services provided (RGUs). In addition, the company estimates that reductions in mobile termination rates (MTRs) during 2013 contributed 30% of the year-on-year revenue decline and 11% sequentially. The management also said it is targeting improving trends in H2 of 2014 from new sales initiatives that have already launched in the market. A short- and medium-term cost reduction initiative, Netia Lite, has gone into implementation and allows confirmation of the adjusted EBITDA target at PLN 505mn for 2014, Netia added. Additional capital investment to support improved sales in H2 of 2014 results in increased capital investment guidance to PLN 215mn from PLN 200mn, the telecom also announced. Netia's net profit was PLN 19.2mn in H1 of 2014 vs. profit of PLN 21.7mn a year earlier. Net profit for Q2 of 2014 alone was PLN 8.3mn vs. profit of PLN 11.0mn in Q1 of 2014. Reported net profit for H1 of 2014 included PLN 11.0mn of interest to service the loan taken in 2011 to acquire Dialog Group vs. PLN 16.8mn of interest for this purpose in H1 of 2013. Moreover, reported net profit for H1 of 2014 included an income tax charge of PLN 6.2mn vs. PLN 16.6mn recorded in H1 of 2013, the firm explained. (c) 2014 Emerging Markets Direct Media Holdings LLC Provided by SyndiGate Media Inc. (Syndigate.info). |