TPSA second quarter loss due to reserves for restructuring

The consolidated loss of telecoms giant TPSA for the second quarter of 2002, was zl. 51 million, a figure much lower than analysts had expected. This results stems from a weak zloty and reserves put aside to cover planned redundancies. However, the operator observed an increase in its profit margins, which is interpreted as a positive effect of restructuring. Weak sales forced the management board to lower forecasts on the increase of future revenues. They will go up this year in relation to 2001 by 3% to 5% and not by 6% to 8% as was earlier assumed. TPSA controlled Centertel, a mobile phone operator, had a great impact on TPSA results, as Centertel's market share jumped from 25% last year to 31% this year. Marek Jozefiak, yesterday told a press conference, "To implement our annual plan we need reserves of a little over than zl. 1 billion". TPSA announced that it had increased reserves in the second quarter, by zl. 238 million, to cover redundancy payments, which will be added to the reserves of zl. 757 million created in the last quarter of 2001 for restructuring employment during 2001-2004. Journalists were further told that the company does not plan to increase reserves any more this year. (Prawo i Gospodarka, p. 1, 3) P.W.