Highs and lows for TP

France Telecom-controlled Telekomunikacja Polska (TP) reported zł.4.5 billion in revenues and a zł.630 million consolidated net profit for the third quarter of 2008. The net profit figures beat average market expectations of zł.575.6 million.

In turn, revenues for the Q1-Q3 period reached zł.13.586 billion, virtually static y/y, while net profit for the period was zł.2 billion, a growth of 20.9 percent y/y.

The largest telecommunications provider in Poland and a former monopoly, TP has also maintained its leading position in the mobile segment, with a share of 33.4 percent, as well as in the broadband internet market, with a 50.7 percent share. According to Maciej Witucki, TP's CEO, the company is demonstrating its ability "to strike a good balance between growth and cost control in order to increase [its] resilience in a time of growing economic uncertainty."

Additionally, the company launched a satellite television service last week, to complement its already-existing internet-based IPTV television service. TP expects the satellite service to be able to reach as many as nine million homes.

"The step is a breakthrough for the company...We assumed that TP would become a multimedia operator and we are one step closer to achieving that goal," according to Dominique Lesage, TP's corporate communications and content director.

But the news last week was not all good for TP. The firm's Warsaw headquarters was raided by officials from the prosecutor's office and regulators, as well as European Commission representatives, on the suspicion that it had been abusing its dominant position.

If found guilty, TP could face fines of up to 10 percent of its annual revenues, or zł.1.8 billion, according to reports by the Rzeczpospolita daily.

TP officials said that the group had not violated the law and refused to comment on the raid.