Netia has confirmed acquiring ProFuturo, internet access provider operating in 12 big Polish cities with annual sales of approx. PLN 50m. Netia is said to be paying PLNm 67 for ProFuturo equity and debt. The benefits for Netia include, apart from increasing its sales revenues, ownership of network of base stations, which could be used for launching WiMax services.
Separately, Telefonia Kolejowa resigned from GSM1800 frequencies it had won in the recent tender for PLNbn 0.5, after its owners, the State Treasury and State Railways said, that they are not prepared to finance the creation of fifth mobile operator in Poland.
While we expect some positive market reaction to the news today, we reiterate our Sell rating for Netia due to unconvincing business model and outlook for deteriorating earnings.