Q3 Losses recorded by TPSA due to unfavourable exchange rates

Telecom giant TP SA will record a fall in revenues in the third quarter this year by zł. 200 - 260 million due to unfavorable exchange rates. The company especially lost on the increase in the value of Euro, which rose by 4.2% in the Q3, but also to the US Dollar, which recorded a 2.1% increase in value. TP SA's total liabilities by the end the Q2 of this year amounted to around zł. 16 billion. "A part of this sum was secured by the company through swap transactions on the currency market. But not everything was secured. There was EUR 1.1 billion and $90 million left," said Radosław Solan, an analyst at the PKO BP brokerage house. Although the losses incurred due to exchange rate fluctuations do not directly affect the company's financial standing, according to analysts, TPSA should create special reserves for this purpose. "Despite the losses on the exchange rate, TPSA should still manage to record zł. 200 million of profits in the Q3," added Solan. (Puls Biznesu, p. 15) A.K.