Agora profit drop in Q2

Media group Agora's net profit in Q2 2008 fell by 34.5 percent y/y to zł.21.5 million and its share price dropped 5.75 percent on the news, to close at zł.30 on August 12. By August 22, the firm's share price had dropped to zł.29.59.

According to a Reuters poll of analysts, Agora, the publisher of daily Gazeta Wyborcza, had been expected to earn a net profit of zł.31.5 million.

The company's poor Q2 results were largely due to higher-than-expected employment costs. It also suffered high costs from the development of its online services, the purchase of Trader.com and outdoor advertising.

Marek Sowa, the president of Agora, claimed that high employment costs would no longer be a factor influencing results. "Most wage increases already took place in May. We can still expect some minor increases, mainly in the online department, but most are behind us," Sowa said.

Agora's sales in Q2 rose 3.2 percent, to zł.343.7 million, in line with expectations.