Netia SA (NET), Poland’s second-largest fixed-line phone company, said second-quarter profit fell 17 percent on slowing growth in the broadband market and increased price competition.
Net income declined to 12.9 million zloty ($4.6 million) from 15.6 million zloty a year earlier, the company said in a regulatory statement today. That missed the 19.8 million-zloty mean estimate by seven analysts surveyed by Bloomberg.
Slower-than-expected growth and intensifying price competition in the broadband market made Netia reduce its forecast for broadband customers by the end of this year to 750,000 from a previous estimate of 780,000 to 800,000, the company said in a separate statement. Netia had 719,595 such clients at the end of June.
The company maintained its guidance that 2011 sales will exceed 1.61 billion zloty.
“Despite the current tough market conditions, I am confident that we are laying the right foundations to accelerate our growth rate once more in the coming quarters,” Chief Executive Officer Miroslaw Godlewski said in a statement. “We see several interesting acquisition opportunities on the Polish market.”
Netia shares fell 3.7 percent to a five-month low of 5.19 zloty as of 9:40 a.m.
To contact the reporter on this story: Marta Waldoch in Warsaw on email@example.com
To contact the editor responsible for this story: Frank Connelly at firstname.lastname@example.org