TPSA announces 18.6% first quarter fall in net profits

Telekomunikacja Polska S.A., the country's biggest telecom operator, has announced first quarter earnings of zl.3.75 billion. While operating profits for the period were down by 4.6%, to zl. 943 million, net profits experienced a much steeper, 18.6%, decline from the first quarter of 2000, to zl.403.3 million. TPSA says its net profits suffered because of the creation of a zl.176 million employee compensation reserve fund. Its performance was also affected by the developing market competition. Despite this, analysts remain optimisitc about TPSA's future. ''In the next months, the company should do much better, as it is soon going to benefit from higher subscription charges," said Dawid Wilanowski, head of the analysis and investment consulting department of the BPH bank brokerage house. Yesterday, TPSA raised its monthly subscription fee from zl.30.5 to zl.42.7. (Parkiet, 2-3 May, p. 2, Prawo i Gospodarka, 2-3 May, p. 3) M. S.-C.