Net earnings of PLN 8.5m for 4Q05, down 78% y/y and 66% q/q, came in line both the consensus forecast of PLN 9.0m and our own estimate of PLN 8.9m. A decline versus last quarter was widely anticipated, due to increased operational and promotional costs, related to the launch of its new newspaper title, and additional PLN 7m of non-cash staff costs, accounting for the cost of its employee incentive plan under IFRS. In fact, these transitory costs came in slightly lower-than-expected, at PLN 24m versus PLN 30m guidance, while staff costs came in line. Revenues surprised on the positive side coming at PLN 329m versus our estimate of PLN 288m, mainly on very good results of new publishing projects. However, management gave a cautious guidance for 2006 advertising market growth at 10% and only 7% for Agora’s core newspaper market. Management also guided for a rise in cost of promotional support for “Gazeta Wyborcza” in 2006 vis-a-vis an expected launch of new Axel Springer Polska newspaper. Other cost items are expected to grow faster in 2006 as well, including cost of materials (up 15%) and staff cost (up PLN40m or 17% y/y. The new guidance falls in line with our new forecast for Agora results in 2006. Overall, we would expect a negative market reaction to guidance on more pressure on operating profit margin in 2006, as the consensus calls for an increase in EBIT margin in 2006. Consequently, we maintain our Sell rating for the stock with a fair value estimate of PLN 55.1 per share.