‘Price war’ impacts Orange Poland revenues

18 Oct 2012

Incumbent operator Orange Poland (previously known as Telekomunikacja Polska, TP) has booked a 5.5% year-on-year decline in revenues for Q3 2012 to PLN3.473 billion (USD1.111 billion), attributed to adverse macroeconomic factors and intense price competition in the mobile segment. Earnings before interest, tax, depreciation and amortisation (EBITDA) were PLN1.323 billion, with an EBITDA margin of 38.1% down by 5.7% and 0.1 percentage points respectively compared to the year-ago period. Net income for the quarter was PLN307 million, dropping 18.6% from PLN377 million a year earlier.

Orange noted that the introduction of unlimited voice and SMS offers in Q2 2012 had led to a decline in mobile ARPU, adding that the ‘price war’ would have a ‘negative impact… on the value of the entire market.’ Blended ARPU fell by PLN2 quarter-on-quarter, with post-paid ARPU falling by PLN3.1 and pre-paid dropping PLN0.9. Mobile subscriptions edged up to 14.758 million from 14.757 million in Q2 2012.

Fixed telephony subscriptions continued to decline, falling by 2.5% q-o-q to 5.195 million, whilst broadband accesses also slumped, with subscriptions falling by 0.3% to 2.338 million compared to the preceding quarter. Triple-play packages continued to see strong growth, noting a 26.5% increase in users to 191,000.

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