1Q17 results – slight beat on EBITDA, strong negative cash flow of PLN 254m
Orange Polska’s (OPL) 1Q17 operating results came in slightly above our forecasts. EBITDA was PLN 748m, down 13.8% yoy, c.2% above both our and the consensus estimates. We like the deceleration of the adjusted EBITDA contraction trend presented by OPL in 1Q17, but the chances of maintaining this trend in the few next quarters are questionable, in our view, as the positive revenues evolution was mainly the result of the huge, 64%, growth in the sales of mobile equipment. This growth, according to the company’s guidance, will be much slower in the next three quarters this year. In terms of KPIs, we appreciate that OPL managed to stop the outflow from its fixed broadband base – an inflow of 52k subscribers to its FTTH and VDSL customer base offset the 52k subscribers outflow from the ADSL base. However, the lack of acceleration in FTTH take-up, despite the new flagship product launch in February this year, may be seen as somewhat disappointing. All-in-all, we see the results and KPIs as neutral, and will hold off with being more optimistic until July, when OPL plans to publish its new strategy.Orange Polska SA is a supplier of telecommunications services in Poland. Co. provides services, including fixed-line telecommunication services, Integrated Services Digital Network, voice mail, dial-up and fixed access to the Internet and Voice over Internet Protocol. Co. is one of Poland's three DCS 1800 and GSM 900 mobile telecommunications providers. Co. provides also third generation UMTS services. In addition, Co. provides leased lines, radio-communications and other telecommunications value added services, sells telecommunications equipment, produces electronic phone cards and provides data transmission, telephone directories, multimedia services and various Internet services.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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