2Q17 results – value-orientated OPL beats our 2Q17 EBITDA forecast by 2%
We see Orange Polska’s (OPL) results as slightly positive. The 2% beat vs. our EBITDA forecast and the 5% beat vs. the market consensus was due mainly to the high non-operating result on the sale of assets (PLN 57m vs. our forecast of PLN 20m). However, we appreciate the company’s focus on value creation, and its decision to try to attract customers with its complex, convergent Orange Love offer, instead of concentrating on customer acquisition at all costs via the subsidisation of equipment. This led to an 11% cut in commercial costs in 2Q17. We also like its strict capex control, which resulted in an 18% drop in capex, ex. fibre, in 2Q17. On the other hand, OPL has not provided the market with any new guidance concerning the impact of roam-like-at-home (RLAH) on the results, apart from saying that it will be significant. We note that we see RLAH as one of the biggest risks for the Polish telcos in the short term. We are looking forward to the company’s strategy update, due on 4 September. OPL’s CFO has stated that the company will provide the market with information on some cost-cutting activities, and maybe some additional capex. We highlight that, as OPL is fully satisfied with its FTTH project performance, it may raise its fibre rollout capex guidance.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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