Netia moves to profit, revenue up 3% in Q1

Polish alternative operator Netia saw its revenue increase by 3 percent year-on-year to PLN 387 million in Q1, supported by the continued momentum in new customer additions. EBITDA was up 34 percent to PLN 93.5 million, including a PLN 2.9 million gain on the disposal of the second tranche of transmission equipment to P4 in Q1. The EBITDA margin was 24.2 percent, up from 18.6 percent for Q1 2009. EBIT increased to PLN 19.5 million from LBIT of PLN 3 million a year ago, and net profit was PLN 14.3 million versus a net loss of PLN 6.4 million for Q1 2009. Cash resources at 31 March totalled PLN 206.3 million, down by PLN 33.3 million from December 2009. Total capital investments, excluding acquisitions of Ethernet networks, were PLN 29 million, which given quarterly EBITDA of PLN 93.5 million generated operating free cash flow of PLN 64.5 million. Including the acquisitions of Ethernet networks totaling PLN 0.8 million, the positive operating free cash flow was PLN 63.7 million. Netia has generated PLN 130.7 million of free cash flow on the above basis, excluding acquisitions, over the past 12 months. Netia increased its year-end 2010 guidance for the number of broadband subscribers from 680,000 to 700,000, reflecting net customer additions in Q1 above management's original expectations. Other elements of the 2010 guidance and the mid-term outlook remain unchanged. Netia added a net 44,050 broadband customers in Q1 for a total 603,367 at end-March and further growth to 608,000 as of 6 May. The voice susbcriber base rose by 1 percent oevr the three months to 1.173 million and is expected to reach 1.225 million by year-end.