Revenues of Polish operator Telekomunikacja Polska (TP) declined to PLN 3.73 billion in Q1, down by 3.7 percent year-on-year. EBITDA dropped 5.3 percent to PLN 1.345 billion, and the margin lost 0.6 percent points to 36.1 percent. Net profit fell to PLN 189 million from PLN 285 million due to higher depreciation, and free cash flow was down 14.2 percent to PLN 398 million amid higher capex. TP estimates the overall market slowed to 0.6 percent growth, from 1.4 percent in Q4, due in part to cuts to SMS termination rates. The rate cut took PLN 40 million off its own revenues. The company confirmed its outlook for a decline in full-year revenues of 2.0-4.5 percent and said results are developing in line with its medium-term plan launched last autumn. Fixed-line revenues declined 7.8 percent year-on-year in Q1 to PLN 2.13 billion, and the EBITDA margin slid to 38.5 percent from 39.8. The subscriber base for the Neostrada broadband service declined by 6,000 during the quarter to 1.988 million at the end of March, and the number of IPTV subscribers fell by 2,000 to 113,000. Satellite TV subscribers were up by 36,000 to 464,000. The number of retail fixed lines dropped to 6.164 million from 6.346 million at the end of 2010. Mobile operator Orange Poland posted revenues up 2.2 percent to PLN 1.856 billion, and its susbscriber base grew 4.7 percent from a year earlier and by 88,000 customers from December to a total 14.42 million at the end of March. The mobile EBITDA margin increased to 28.2 percent from 27.6 a year ago. Orange's mobile internet subscribers grew to 599,000 from 547,000 in the previous quarter. APRU was still down to PLN 39.4, from PLN 42.5 in Q4 and PLN 41.2 in Q1 2010.
