Elektrim most attractive on WSE, but subsidiary weak

According to ABN Amro analysts, Elektrim holding is the most attractive telecom company on the Warsaw Stock Exchange (WSE). Its shares have been valued at zl 56. The most appealing part of Elektrim is Elektrim Telekomunikacja's stock in Polska Telefonia Cyfrowa. Yet one of its subsidiaries, Elektrim Kable cable producer group, is facing financial difficulties; in the first six months of this year it recorded losses of zl.18.6 million. According to the group's newly elected board of directors, Elektrim Kable will reach its projected income estimated at zl. 1.45 million. After the first half of the year, Elektrim Kable's sales were zl. 860 million, with net profits of almost zl. 3 million. The company claims the poor results are due to lower demand for cables and increased competition on the market, aggravated by the high prices of copper and aluminum. The company, which exports 30% of its production, has likewise suffered because of the low price of the euro. The company also has a debt of zl 730 million. (Parkiet 7-9 Oct., pages. 3,5)