Prokom has reported its 1H06 statements reviewed by auditors which point to a consolidated net income 6.5% higher than in quarterly statements. The reasons behind the change stem from alternations both in unconsolidated statements and results of its subsidiaries.
Although Prokom’s unconsolidated revenues grew 0.9% after auditor’s revision, EBIT remained unchanged. Pre-tax profit rose 1.6% due to more favourable impact of net financial activity. Unconsolidated net income rose 2%, with the additional impact stemming from slightly lower effective tax rate.
Prokom’s consolidated revenues grew 0.2% after revision, which was a consequence of: 0.9% higher sales at parent company and 0.1% higher revenues at Softbank not being fully offset by 1.3% revenue decrease at ABG Ster-Projekt. Consolidated net profit rose by 6.5%, which we believe resulted from: higher net earnings at the parent company, Softbank’s 1.3% higher net profit due to stronger contribution from Asseco (consequence of badwill amortization recognition) and 5.5% increase in the bottom-line of ABG Str-Projekt due to recognition of lower tax liability.
Our view: We believe the news could have a moderately positive trading impact.