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Orange Polska set for 200mn zloty Q4 net loss

Published February 19, 2018 Updated February 19, 2018 01:09pm

Poland's largest telecoms operator is expected to report the loss mainly due to restructuring charges related to planned layoffs. Sales are seen down 2.3 percent to 2.91 billion zlotys, forecasts from 6 banks and brokerages showed.

The forecasts would pin the full-year net loss at 62 million zlotys compared to a net loss of 1.75 billion zlotys in 2016 when the company booked an impairment after it had reassessed future projected cash flows.

"We expect a net loss (in Q4 of 2017), driven solely by restructuring charges estimated at PLN 170 million related to the 2018-19 Social Agreement to reduce the headcount by 2,680 people," Erste Group said in a research note.

Orange Polska has suffered in recent quarters due to a continued fall in its legacy fixed-line business, increased costs of sales and large-scale fibre investment.

 

Copyright Reuters, 2018