Netia Holdings S.A. Announces First Quarter 1998 Results.WARSAW Warsaw (wôr`sô), Pol. Warszawa, city (1993 est. pop. 1,655,700), capital of Poland and of Mazowieckie prov., central Poland, on both banks of the Vistula River. , Poland--(BUSINESS WIRE)--June 11, 1998--NETIA HOLDINGS S.A., ("Netia") today announced unaudited results for the first quarter ended March 31, 1998. Revenues for the quarter increased by 191% to PLN PLN In currencies, this is the abbreviation for the Polish Zloty. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 21,664,000 (US$6,281,000) compared to PLN 7,447,000 for the corresponding period last year. Loss before interest depreciation, amortization and tax for the quarter fell to PLN 8,630,000 (US$ 2,503,000) compared to PLN 14,261,000 for the same period last year. Net loss for the quarter was PLN 23,115,000 (US$ 6,703,000) compared to a net loss of PLN 18,630,000 for the first quarter 1997. The results for the first quarter of 1998 included a provision for deferred tax of PLN 6,993,000 (US$ 2,027,000). Revenues from telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. increased by 270% to PLN 15,863,000 (US$ 4,599,000) from PLN 4,287,000 in the first quarter of 1997 primarily due to a more than threefold increase in the number of subscribers to 77,973 from 23,901 as of March 31, 1997. At the end of the quarter the Company had a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of 41,704 lines sold waiting to be connected and by the end of May 1998 the number of subscribers had reached 90,500. During the last 12 months, Netia has made considerable progress in building out its telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. . As of the end of the quarter the Company is operating 16 digital switches compared to five at the end of the first quarter of 1997. The Company has increased the number of connected lines (defined as lines connected to the distribution point with the last drop to the customer to be completed) by 360% to 163,056 lines at the end of the first quarter of 1998 from 32,278 lines at the end of the first quarter of 1997. In addition, the Company doubled the fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. backbone backbone: see spinal column. The part of a network that handles the major traffic. It employs the highest-speed transmission paths in the network and may also run the longest distances. to 700 km at the end of the first quarter of 1998 from 350 km at the end of the first quarter of 1997. Finally, Netia began operating 4,500 lines of Radio In The Local Loop which accounted for 3% of the network at this end of the quarter. The Company has contracts to deploy an additional 5,500 lines this year. To support the expanding network, Netia has opened thirty sales and customer care offices in its license areas during the last twelve months. During the quarter, the company won the tenders and received the licenses to build and operate telecommunications networks in the following cities: Gdask, Gdinia and Sopot Sopot (sô`pôt), Ger. Zoppot, city (1993 est. pop. 45,400), Pomorskie prov., N Poland, on the Baltic Sea and the Gulf of Danzig. A seaside resort and tourist center, it had a fashionable gambling casino before World War II. (total population of 757,000); Katowice Katowice (kätôvē`tsĕ), Ger. Kattowitz, city (1993 est. pop. 366,200), capital of Śląskie prov., S Poland. , Gliwice Gliwice (glĭvē`tsĕ), Ger. Gleiwitz, city (1993 est. pop. 216,000), Śląskie prov., SW Poland. A coal-mining and steel-making center of the Katowice region, it also produces machinery and chemicals. , Bytom Bytom (bĭ`tôm), Ger. Beuthen, city (1994 est. pop. 232,400), Śląskie prov., SW Poland, in the Katowice mining region. An important heavy industrial center, it has iron- and steelworks and the largest silver foundry in Poland. , Tychy Ty·chy A town of south-central Poland south of Katowice. It was largely developed as a resettlement community after World War II. Population: 132,000. , Mikolow and Sosnowiec Sosnowiec (sôsnô`vyĕts), Ger. Sosnowitz, city (1993 est. pop. 258,500), Śląskie prov., S Poland. A center of the Katowice mining and industrial region, it has coal mines, ironworks, and steelworks and various other (total population of 1,209,000); Krakow (total population of 741,000); Poznan Poznań (pôz`nänyə), Ger. Posen (pō`zən), city (1994 est. pop. 589,300), capital of Weilkopolskie prov., W central Poland, port on the Warta River. (total population of 581,000); and, Chelm Chełm (khĕlm), Rus. Kholm, city (1994 est. pop. 67,900), Lubelskie prov., E Poland. It is a railway junction and has industries manufacturing metals, lumber, machinery, cement, and liquors. (total population of 70,000). By winning those tenders, the company holds the licenses of five of the eight largest cities in Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, that were released for tender. Warsaw and Lodz are expected to be released this year. As a result, the total population covered in the license areas increased from 9,800,000 to 13,200,000. Net fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → increased to PLN 695,000,000 (US$ 201,411,000) as of March 31, 1998 from PLN 273,000,000 as of March 31, 1997 reflecting mainly the expansion of the network. During the quarter the Company cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. its line of credit consisting of US $97,000,000 and DEM See digital elevation model. 83,500,000 after winning the tenders for four of the ten largest cities in Poland in March 1998. The outstanding balance of US $8,000,000 and DEM 6,500,000 is scheduled to be repaid in June June: see month. 1999. As of March 31, 1998 the Company had cash and cash equivalents of PLN 791,824,000 ($US 230,000,000) available to be invested in building the telecommunications network and to support its operating activities. NETIA HOLDINGS is the largest private provider of fixed- line local telephone services in Poland. The Company currently holds 23 licenses to build and operate telecommunications networks, which cover approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 13.2 million people, representing over 33% of the Polish Polish (when pronounced /ˈpoʊːlɪʃ/ or /ˈpəʊːlɪʃ/) may refer to:
Certain statements contained in this release contain forward looking information with respect to plans and projections of future performance of the company, the occurrence of which involves certain risks and uncertainties, including but not limited to product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological. MANAGEMENT WILL HOLD A CONFERENCE CALL TO DISCUSS THE FIRST QUARTER RESULTS DATE: JUNE 15, 1998 TIME: 8:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy DIAL IN # 973 628 9554 (A replay will be available from 10:30 am EST on May 15, 1998 to 10:30 am EST on April 17, 1998. Dial In # 402- 220-9156) -0-
Netia Holdings S.A.
Consolidated Income Statement
(All amounts in Thousands)
Convenience
Translation
Into US$
Three
Polish Zlotv Months
Three Months Ended Ended
March 31, March 31,
1998 1997 1998
(unaudited) (unaudited)
Revenue
Telecommunication
Service 15, 863 4,287 4,599
Non-Telecommunications
Service 1,875 1,554 544
Sales of Equipment 3,926 1,606 1,138
21,664 7,447 6,281
Interconnection Charges (3,556) (609) (1,031)
Cost of Equipment (2,756) (1,218) (799)
Other Operating Expenses (13,729) (2,628) (3,981)
Depreciation and Amortization
of Goodwill (8,079) (2,991) (2,343)
Selling, Marketing, General
and Administrative Expenses (10,253) (17,253) (2,973)
Loss from Operations (16,709) (17,252) (4,846)
Financial Expense, Net (7,163) (5,406) (2,077)
Loss Before Income Tax (23,872) (22,658) (6,923)
Income Tax Charge (6,993) (1,001) (2,027)
Minority Share in Losses of
Subsidiaries 7,750 5,029 2,247
Net Loss (23,115) (18,630) (6,703)
Netia Holdings S.A.
Consolidated Balance Sheet
(All amounts in Thousands)
Convenience
Translation
Into US$
Three
Polish Zlotv Months
Three Months Ended Ended
March 31, March 31,
1998 1997 1998
(unaudited) (unaudited)
Assets
Current Assets
Cash and cash equivalents 791,824 77,351 229,614
Restricted investments 64,221 18,623
Short-term investments in
marketable Securities - 3,072 -
Accounts receivable
Trade net 12,768 3,719 3,702
Government 26,324 15,465 7,633
Related parties 576 167
Other 1,983 3,462 575
Inventories 2,387 692 692
Prepaid expenses 3,065 1,034 889
Total Current Assets 903,148 104,795 261,895
Restricted Investments 128,443 37,246
Investments at Cost 1,222 5,507 354
Fixed Assets, Net 694,563 273,478 201,411
Investments in Real Estate 6,295 - 1,825
Licenses 275,046 - 79,758
Deferred Financing cost,
Net 77,768 20,976 22,551
Goodwill, Net 29,449 6,090 8,540
Total Assets 2,115,934 410,806 613,580
Netia Holdings S.A.
Consolidated Balance Sheets
(All amounts in Thousands)
Convenience
Translation
Into US$
Three
Polish Zlotv Months
Three Months Ended Ended
March 31, March 31,
1998 1997 1998
(unaudited) (unaudited)
Liabilities
Current Liabilities
Current maturities of long-
term debt 2,681 - 777
Accounts payable and
accruals
Trade 177,705 30,464 51,531
Employees 531 371 154
Government 2,691 3,598 780
Related Parties 15,803 17,018 4,583
Accruals and other 118,083 22,611 34,242
Deferred Income 644 804 187
Total Current Liabilities 318,138 74,866 92,254
Refundable Customer
Deposits 1,571 1,469 455
Long-Term Debt 1,445,465 153,174 419,157
Long-Term Loans 8,433 3,016 2,445
Other Long-Term Liabilities 220,037 - 63,806
Deferred Tax Liability 9,574 3,735 2,776
Minority Interest 16,910 43,519 4,904
Shareholders' Equity
Share capital (nominal par
value of PLN 6
Per share) 77,117 65,316 22,362
Share premium 188,460 145,572 54,651
Accumulated deficit (169,771) (79,861) (49,230)
Total Shareholders' Equity 95,806 131,027 27,783
Total Liabilities and
Shareholders' Equity 2,115,934 410,806 613,580
CONTACT: Lippert/Heilshorn & Associates Inc. Jody Burfening, 212/838-3777 ext. 304 jody@lhai.com or Netia Holdings Joseph Ganor T: 48 22 648 4500 F: 48 22 648 4491 |
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