The management of (17,18 PLN, 3,18%) decided that it will not outsource fixed network maintenance unit outside of the TP Group. Instead the company has reached an agreement with its trade unions and now more people may voluntarily leave the group in the nearest future. No details of the new agreement with unions were disclosed.
Our view:
We see the news as slightly negative for . Initially an outsourcing of over 2000 employees responsible for fixed network maintenance was expected to be value accretive for (higher utilization of resource translating into higher margins). The news, however, is neutral for our estimates, which do not include initially planned outsourcing of the fixed network maintenance unit and instead include more of voluntary staff reductions in years ahead.
[Recommendation: Hold ; Fair Value 17.48 PLN]