Adjustment of the guidance for 2008 (69/2008)
The Management Board of Netia SA (hereinafter the “Company” or “Netia”) hereby gives notice about the following changes in its guidance for 2008 published in the Company’s current report No. 58/2008 dated 14 October 2008 (hereinafter the “Report”):
1. Following stronger than expected business performance in Q4 2008, Netia is upgrading its EBITDA guidance from PLN 145 million to PLN 160 million;
2. Having been unable to agree satisfactory terms for the acquisition of certain targeted Ethernet networks, Netia is lowering its Ethernet Network M&A spending target from PLN 30 million to PLN 24 million.
Due to the fact that the above elements of the 2008 guidance are being changed by more than 10% in comparison to the guidance published in the Report, the Company publishes this report.
The following table presents the Company’s current estimates of all elements of the published guidance in comparison to the guidance published in the Report:
|Number of broadband service clients|
|Number of voice service clients (own network and WLR)|
|Unbundled local loop (LLU) nodes|
|Revenues (PLN m)|
|EBITDA (PLN m)|
|Investment outlays (excl. M&A) (PLN m)|
|M&A investment in Ethernet networks (PLN m)|
The reductions in Netia’s guidance for broadband and voice subscribers reflect the Company’s revised expectations of closing fewer Ethernet acquisitions and an increasing focus on acquiring double-play Internet and voice customers rather than single play customers.
Netia would also like to announce that it continues to monitor the possibilities of achieving the forecast results on a quarterly basis. The achievement of the forecast results will be assessed, and any necessary adjustments introduced after the end of a given quarter of the financial year based on an analysis of the sales revenues, investment expenditure, the number of clients and any other factors it may consider relevant.
None of the information contained in this current report is a recommendation to purchase or sell financial instruments within the meaning of the Regulation of the Minister of Finance on information constituting recommendations regarding financial instruments or their issuers, dated 19 October 2005 (Polish Journal of Laws (Dz. U.) of 2005, No. 206, item 1715). For a more detailed description of the risks involved in investing in Netia securities, please see Netia’s annual financial report for 2007. Subject to the obligations referred to herein, Netia represents that is not required to publicly update or revise any of its forecasts and strategic objectives.
Paragraph 31.2 of the Regulation of the Minister of Finance on current and periodical information to be disclosed by issuers of securities, dated 19 October 2005 (Polish Journal of Laws (Dz. U.) of 2005, No. 209, item 1744).