Netia's Q4 revenues stable, EBITDA up on quarterly basis

Friday 17 February 2017 | 12:12 CET | News

Polish operator Netia published full-year 2016 results showing that revenues amounted to PLN 1.522 billion, down by 3 percent year-on-year. Netia noted that the drop slowed from over 10 percent in 2015 and 6 percent in 2014.

Profits were relatively stable, with adjusted EBITDA at PLN 447 million. The company said it continued improving results in the strategic areas of B2C, with more on-net internet and TV services, and B2B, where it increased revenues quarter-on-quarter.

Revenues in Q4 2016 amounted to PLN 372 million, unchanged compared to Q3 2016, and adjusted EBITDA increased quarter-on-quarter by 7 percent to PLN 114 million.

The decrease in annual revenues resulted mainly from a 6-percent decrease in consumer RGUs provided on another network. The number of services provided over the Netia network was unchanged quarter-on-quarter, for the second time in a row, while in 2015 the balance was negative. In total, 59 percent of internet customers are served via Netia's own network. 

The number of consumer services provided on NGA lines (over 30 Mbps) increased in the fourth quarter by a record 14,000 and reached 181,000. The number of TV subscribers continued growing, up by 5,000 in Q4 to a total 182,000. ARPU stabilised at PLN 56.

Thanks to beneficial offers provided in cooperation with content providers, the operating segment B2C reached in Q4 2016 a record-high adjusted EBITDA of PLN 32 million and margin of 21.8 percent.

Revenues of the operating segment B2B increased by about PLN 3 million in Q4 to PLN 185 million, mainly due increased wholesale traffic. The group saw a stable trend in broadband services and maintained solid profitability with an adjusted EBITDA margin around 39 percent.

Due to the high degree of operational integration of TK Telekom within the Group Netia, the results of the company are included in the B2B segment.

In 2016, Netia started implementation of the projects Local Netia and 21st Century Network, under which the company plans to upgrade more than 1.6 million lines to fibre by 2020. The Supervisory Board has adopted a budget of PLN 417 million for that project. In 2016, adjusted capital expenditure of the group amounted to PLN 211 million.

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