Mixed results for ITI Group

At the same time, however, the company recorded a net loss of EUR40.4 (zł.146.9) million, in contrast with a net profit of EUR66.4 (zł.241.2) million in Q3 2006.

"ITI's financial losses are connected mainly with currency operations - the disadvantages of the strong złoty. Even bonds, which theoretically should protect ITI from currency risk, are decreasing in value," explained Anna Boniecka, a financial analyst at Bankier.pl.

"Losses from operational activities were another factor in the Q3 net loss. This doesn't look good, but financial flow analysis shows very positive perspective for ITI's future. It seems like the loss was mainly in accounting. Financial flow shows real money, which looks positive. Also, when a firm has a loss, it does not have to pay taxes," Boniecka told WBJ.

In Q3 ITI Group signed a contract for a EUR320,000 (zł.1.2 million) loan with BPH and Calyon banks in order to pay off existing debts and for development, especially in television. The development and launch of "n" - ITI's digital platform - caused a EUE29.6 (zł.107.6) million net loss to EBITDA over the first three quarters of 2007, but generated revenues of EUE17.2 (zł.62.6) million.

"Our good revenues for the first nine months of 2007, due mainly to the success of the TVN Group, mean we can be happy about our leadership position and keep dominance over our competitors in the Polish electronic media market," said Wojciech Kostrzewa, president of ITI Group.