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WARSAW, Oct 25 (Reuters) - Poland’s largest telecoms operator Orange Polska raised its full-year core earnings guidance on Wednesday, citing a rebound in its fixed broadband business.
Orange Polska, a unit of France’s Orange, said it now expected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 3.0 billion zlotys ($835 million) this year, compared with 2.8-3.0 billion before.
That came after it reported a 24 percent drop in third quarter net profit to 28 million zlotys, and a 6.6 percent decline in EBITDA. Analysts polled by Reuters had expected net profit of 26 million zlotys.
“Excluding a negative regulatory impact of more than 70 million zlotys due to ‘roam like at home’, the EBITDA year-on-year change would have been in positive territory” Chief Financial Officer Maciej Nowohonski said in a statement, referring to new EU rules to cut call roaming charges.
Orange Polska has suffered in recent quarters from a continued fall in its fixed-line business, an increase in the cost of sales, and fibre investment.
“We are especially pleased with the recovery of our fixed broadband business, which is supported by ... fibre and wireless for fixed,” Nowohonski said, adding the company was able to achieve its commercial targets at lower costs.
The company’s shares have lost over 70 percent of their value in the last six years. They rose 0.2 percent to 4.95 zlotys on Wednesday. The third quarter results were released after the close of trading.
$1 = 3.5905 zlotys Reporting by Marcin Goettig; Editing by Susan Fenton and Mark Potter