KGHM subsidiaries are expanding their activities, stepping up investment in their core businesses, according to today’s ‘Puls Biznesu’ daily. Telefonia Dialog plans to launch interactive internet television for its 80k strong broadband internet client base in April. Meanwhile, Interferie, the leisure arm of KGHM, plans to refurbish its 4 seaside and mountain hotels, by investing in conference and spa facilities in order to counteract negative seasonality effect and smooth out the revenue stream.
Our view: We view the news as slightly positive, as long as the KGHM subsidiary capex bill remains reasonable and the development projects fall in line with company core competences, which seems to be the case, with regard to the projects mentioned by ‘Puls Biznesu’. We reiterate our Buy rating for the stock.