Netia posted much stronger than expected 2Q09 results. Net loss of PLN 14.5m was narrower than the PLN 17.1m consensus, and our PLN 18.9m estimate. In fact, reported net income would have been even higher without the PLN 6.2m hedging cost. The positive surprise was in much higher than expected EBITDA of PLN 69.4m; 22% ahead of our expectation and 28% ahead of the PLN 54.2m consensus. Revenues were still positively affected by the Tele2 consolidation, and continued data growth as broadband roll-out remains strong. We expect positive reaction to the news and will be looking for management to bring forward expected date to return to profit