Bulletin
Adjustment of the guidance for 2008 and the outlook for 2009 (74/2008)
The Management Board of Netia SA (hereinafter the “Company” or “Netia”) hereby gives notice about the adjustment to its guidance for 2008 and outlook for 2009 published in the Company’s current report No. 69/2008 dated December 12, 2008 (the “Report 1”) and the Company’s current report No. 58/2008 dated October 14, 2008 (the “Report 2”), respectively, with regard to the M&A spending for the acquisition of the Ethernet networks.
Due to the closing of the purchase transaction of Air Bites Polska Sp. z o.o. on December 22, 2008 for PLN 21.6 million (see Netia’s current report No. 73/2008 dated December 22, 2008), Netia increases its guidance for M&A investment in Ethernet networks from PLN 24 million to PLN 45 million i.e. by more than 10% from the previous guidance published in the Report 1.
In addition, in connection with the closing of the above M&A transaction and the acquisition of 24.5 thousand new clients Netia increases its 2008 guidance for the number of broadband clients from 385,000 to 410,000.
Due to the above mentioned acquisition of Air Bites Polska Sp. z o.o., which was previously considered as a potential acquisition target for 2009, and the lack of visibility over further deals in 2009, Netia is withdrawing from providing the guidance for M&A investment in Ethernet networks in 2009.
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 1:
| 2008 Guidance | Previous | Updated |
Number of broadband service clients | 385,000 | 410,000 |
Number of voice service clients (own network and WLR) | 1,060,000 | 1,060,000 |
Unbundled local loop (LLU) nodes | 125 | 125 |
Revenues (PLN m) | > 1,100 | > 1,100 |
EBITDA (PLN m) | 160 | 160 |
Investment outlays (excl. M&A) (PLN m) | 240 | 240 |
M&A investment in Ethernet networks (PLN m) | 24 | 45 |
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 2:
| 2009 Guidance | Previous | Updated |
Revenues (PLN m) | 1,500 | 1,500 |
EBITDA (PLN m) | 225 | 225 |
Investment outlays (excl. M&A) (PLN m) | 280 | 280 |
M&A investment in Ethernet networks (PLN m) | 75 | --- |
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.
Disclaimer:
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.