Polish Cyfrowy surprises with Q1 net growth on higher advertising, fees

WARSAW Thu May 15, 2014 12:44am EDT

WARSAW May 15 (Reuters) - Cyfrowy Polsat, Poland's largest media group, surprised with a 3 percent gain in first-quarter net profit as higher advertising revenue and subscription fees outweighed one-off debt refinancing costs.

Cyfrowy, controlled by Polish media mogul Zygmunt Solorz-Zak, on Thursday posted a bottom line of 98 million zlotys ($32.1 million). Analysts expected an 8 percent dip at 87 million.

The company had last week finalised its last year purchase of Poland's No.3 mobile operator, Polkomtel, from their co-owner for 6.2 billion zlotys.

The takeover means Cyfrowy takes on 10.2 billion zlotys of Polkomtel debt left over from Solorz-Zak's buyout of the mobile operator in 2011, raising the joint group's net debt to 3.1 times its core profit. ($1 = 3.0557 Polish Zlotys) (Reporting by Adrian Krajewski; Editing by Subhranshu Sahu)

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