Will 2005 be Agora's last year with good results?

The company posted revenues of zł.329 million which is 18% more than a year ago, but the consolidated net profit was just zł.8.6 million as compared to zł.38 million a year ago. For the whole of 2005 the Agora group generated a profit of almost zł.127 million as compared to zł.67 million in 2004. The company is preparing for a tough year due to increasing competition on the market. "We are expecting to face a hard battle which will be particularly visible in the broadsheet segment," declared Agora's president Wanda Rapaczyńska. The main competitor will probably be Axel Springer, which plans to launch a new daily this year. "Axel is a difficult rival. It has deep pockets and allocates funds for expansion in the Central and Eastern Europe. Nevertheless, we are determined to maintain the position of Gazeta Wyborcza as the main opinion making daily," stated Rapaczyńska. Agora plans to increase outlays for promotion and marketing which last year amounted to zł.158 million. It also expects that the cost of production, materials and renumeration will increase, which will lower its financial result in 2006 by approximately zł.40 million. (Parkiet, p. 2; Puls Biznesu, p. 11) E.B.