April 23 (Bloomberg) -- Telekomunikacja Polska SA, Poland’s largest phone company, said first-quarter profit declined 67 percent as the country’s regulator cut rates for mobile operators.
Net income dropped to 81 million zloty ($26 million) from 242 million zloty a year earlier, the Warsaw-based company said in a regulatory statement today. That beat the 46.9 million zloty average estimate of nine analysts in a Bloomberg survey.
Sales fell 7.2 percent to 3.27 billion zloty in the first three months of the year, while earnings before interest, taxes, depreciation and amortization shrank to 1.03 billion zloty from 1.23 billion zloty.
TPSA, as the company is known, has seen revenue decline since 2007 as competition increased and the country’s phone regulator forced operators to cut prices. The watchdog is lowering the rates that mobile operators charge each other for calls to their networks, or MTRs, while competition is eroding fixed-line revenue. Telekomunikacja expects a “deep” decline of sales this year, it said in February.
Sales at its mobile unit dropped 10 percent to 1.53 billion zloty.
TPSA has been the worst-performing stock in Warsaw’s benchmark WIG20 Index this year, falling 46 percent.
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