UPC Polska $492 million loss due to new accounting rules

The largest domestic cable television operator UPC Polska had almost 995,000 subscribers at the end of 2002. According to the annual report sent to the American Securities and Exchange Commission (SEC), last year the company had revenues of $80 million against $138.7 million a year earlier. The result was mostly due to the merging of two digital platforms at the end of 2001, which erased some revenues from UPC Polska's balance sheet. After taking into account this change, company revenues increased by almost 2% while its operating profit improved and the operating loss decreased from $185 million in 2001 to $19 million last year. However, the company recorded a very high net loss amounting to almost $500 million, which was the result of changing the accounting rules and amortizing the company's value. The management of UPC would not comment on rumors that it might soon sell the Polish unit. (Parkiet, p. 1) M.M.