Orange Q4 EBITDA to take PLN 196 mln hit

WSE-listed telecom group Orange Polska will take a PLN 196 million hit on its Q4 2017 EBITDA results due to its new social agreement for 2018-19, and final settlement to the agreement from previous years. Still, Orange claims that the write-off will not affect its 2017 EBITDA estimated at PLN 3 billion. In December Orange Polska signed a social contract with trade unions for the years 2018-19, under which a maximum of 2,680 employees will leave the company voluntarily. The contract also provides for the possibility of pay increase. The value of the package for a departing employee will depend on the seniority of the group, in accordance with the Collective Labor Agreement, and will be increased in 2018 by PLN 5,000 employees with work experience from 10 to 15 years, by 10,000 PLN with seniority from 15 to 20 years and by PLN 26,000 for those with over20 years’ experience in the company.