Raiffeisen maintains TPSA "sell" rating based on predicted revenue decline
Raiffeisen ZentralBank has maintained its low evaluation of telecoms giant
Telekomunikacja Polska (TPSA). In a report released yesterday Raiffeisen
gave TPSA shares a "sell" recommendation, after awarding them a value of
just zl.10, zl.5 below their current stock exchange listing. The report
predicts a significant fall in TPSA revenues over the next few years. The
report's author, Bob Creamer, sees revenues, estimated in 2001 at zl.17.3
billion, falling to zl.16.4 billion in 2002 and zl.16.1 billion in 2003,
leading to a net loss this year of of zl.674 million and zl.540 million in
2003. Creamer suggests the company's problems are a result of its slow
restructuring and the general downturn on the fixed-line telephone market in
the face of fierce competition from mobile operators. (Gazeta Wyborcza, p.
23) M.T.
