Polkomtel posts good Q3 results, but taxes hit profits

Polkomtel, the second largest and most profitable mobile operator, reported a sharp jump in third quarter core profit on Tuesday, but said a higher effective tax rate pushed its net Q3 profit down 6% to zl. 231 million. Its EBITDA rose 17% to zl. 518 million, while its EBITDA margin improved 2.4 points to 41.1%. "We have consistently improved our operational results. This margin is satisfactory," the operator's financial director Jesper Larsen said. The operator noted that its revenues rose nearly 10% to zl. 1.26 billion in the July-September period, but still hopes to increase the number of its customers from 4.09 million to 4.4 million by December and post annual revenues of zl. 4.8 billion. Polkomtel said its debt amounted to zl. 1.64 billion in September, a 32% year-on-year drop, as it cut back its investment program and took advantage of a state decision to delay implementation of UMTS third generation mobile services. The average monthly revenue per customer, slipped to zl. 100 from zl. 119 in the third quarter of last year, but still remains 20% above that of Centertel. Analysts believe Centertel could easily go up-market and eat into Polkomtel's core business clients if it offers a joint service package with TPSA's fixed-line operations. Polkomtel and mobile market leader PTC are seeking to stop TPSA from offering such a package in a case before the country's competition watchdog. (Reuters) J.K.