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UPDATE 1-TPSA H1 net profit halves, beats forecasts

Published 07/29/2009, 02:03 AM
Updated 07/29/2009, 02:08 AM
ORAN
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OPL
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* H1 net profit down to PLN 702 mln vs 675 mln in poll

* Sales 6 percent down to PLN 8.5 bln vs 8.53 bln in poll

* Says opts for no additional remuneration to shareholders

(Adds more detail, CEO comment)

WARSAW, July 29 (Reuters) - Poland's No.1 phone operator TPSA saw net profit halve in the first six months of 2009, as lower mobile fees and the economic slowdown hit operating earnings, the company said on Wednesday.

The France Telecom unit earned 702 million zlotys ($241 million) versus 675 million expected in a Reuters poll. Sales fell 6 percent to 8.5 billion zlotys compared to 8.53 billion seen by analysts.

Poland's former state monopoly has seen a steady deterioration of its fixed-line business and until now has relied on its mobile arm to compensate.

The model has been under increasing pressure as the state regulator pushed for lower mobile fees and the market became saturated, causing a price war between operators.

"In line with our expectations, the telecom sector is under the negative influence of a number of factors this year," TPSA Chief Executive Maciej Witucki said in the statement.

"Nevertheless, I cannot be satisfied with our operating results, even if a big part of them stems from the deterioration of the environment in which we operate... We are in the course of reviewing our strategic goals."

The group's operating profit fell 42 percent to 1.11 billion zlotys, compared to 1.17 billion seen in Reuters poll, while EBITDA (earnings before interest, tax, depreciation and amortisation) declined by a fifth to 3.2 billion compared to 3.29 billion seen by analysts.

Although TPSA did not publish separate second-quarter results, the figure stood at around 374 million zlotys according to Reuters calculations, or 53 percent down year-on-year.

TPSA, whose shares are down 17 percent so far this year, also said it opted not to make further payouts to shareholders on top of 2 billion zlotys it handed back as dividend earlier this year.

The group reiterated it aims for at least 3 billion zlotys in free cash flow at the end of the year. After the first six months the figure stood at 1.48 billion.

(Reporting by Adrian Krajewski; editing by John Stonestreet)

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