January 23, 2018 / 2:36 PM / 4 months ago

Orange's Polish arm says Q4 EBITDA hit by social costs

WARSAW, Jan 23 (Reuters) - Poland’s largest telecoms operator Orange Polska said on Tuesday its earnings before interest, tax, depreciation and amortisation (EBITDA) for the fourth-quarter of 2017 would fall by 196 million zlotys ($57.6 million).

* Orange Polska, a unit of France’s Orange, said the adjustment is a result of the social agreement signed with trade unions for 2018-2019 and the final settlement of the social agreement for 2016-2017.

* The amount consists of a charge of 200 million zlotys reported as employment termination expense and a one-time decrease of 4 million zlotys in labour expense.

* The amount reported as employment termination expense has been determined for the maximum number of employees who can leave Orange Polska under the new social agreement and their expected seniority structure, and accounts for certain additional benefits.

* Up to 2,680 employees will be entitled to take advantage of the voluntary departure package.

* The adjustment will not affect the full-year adjusted EBITDA guidance for 2017, expected at around 3.0 billion zlotys.

$1 = 3.4020 zlotys Reporting by Pawel Florkiewicz; Writing by Lidia Kelly and Edmund Blair

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