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UPDATE 1-Mobile business drives up profit at Poland's Cyfrowy
August 28, 2014 / 7:36 AM / 3 years ago

UPDATE 1-Mobile business drives up profit at Poland's Cyfrowy

(Adds more detail on results, tie-up synergies)

WARSAW, Aug 28 (Reuters) - Poland’s largest media group Cyfrowy Polsat surpassed analysts’ expectations with a 63-percent rise in second-quarter net profit, thanks to the inclusion of results from its mobile arm Polkomtel.

Cyfrowy, which also includes Poland’s top pay-TV platform and a leading private broadcaster, booked net earnings of 132 million zlotys ($41.6 million). That compared with an average forecast of 36 million in Reuters poll of analysts.

The analysts’ estimates had ranged from a net profit of almost 99 million zlotys to a loss of almost 40 million for the April-June period, due to uncertainty over the company’s debt restructuring costs.

Thanks to strong results at Polkomtel, consolidated for about half of the quarter, both Cyfrowy’s revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) beat expectations - by more than doubling to 1.75 billion and 709 million zlotys, respectively.

The deal to buy Poland’s No.3 mobile operator, signed last year, was aimed at forging a group generating 10 billion zlotys in annual revenue, core profit of 3.9 billion, and operating cash-flows of 3.6 billion, making it one of Poland’s top 10 listed firms.

Cyfrowy expects to achieve savings worth 3.5 billion zlotys by the end of 2019, mainly from cost cuts and cross-selling with Polkomtel’s client base of almost 14 million.

1 US dollar = 3.1764 Polish zloty Reporting by Adrian Krajewski; Editing by Pravin Char

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