GTS and Energis consolidation, financial results for Q3 2005
Warsaw, October 13, 2005
GTS has recently completed a purchase of shares in Energis GTS Polska formally became the majority shareholder in Energis Polska Oct. 7. In the Q3 2005, GTS Energis reported sales of over PLN 97 million.
In July, the telecommunications company GTS Polska signed a contract with stockholders in Energis Polska for the purchase of 97.5% of the operator's shares. The contract was signed pending approval from the Competition and Consumer Protection Office. That approval was issued September 30 and the contract was finalized a week later.
This is one of the largest consolidations in the telecommunications sector in Central Europe. The agreement will allow the newly formed business to become a leading alternative operator on the Polish market. The company's income will reach an estimated PLN 380 million at the end of the year. The company will operate under the GTS Energis brand, whose two-person board consists of Jaroslaw Mikos - the company's President and Managing Director (so far the President of Energis Polska) and Tomasz Galas, Vice-President of the board and Financial Director (he held a similar post in GTS Polska). "GTS-Energis has a clear-cut business goal, namely, to focus its operations on business customers and telecom operators", said Mikos. "We will also continue working on the consolidation of the Polish market for telecommunications".
Intensive organizational preparations are under way on the operations of the new Corporation. A managing team has been appointed at GTS Energis. The company will be constructed relying on the best features of the merged companies. Strategic goals and internal procedures are undergoing detailed and rigorous verification.
In the Q3 2005, GTS Energis reported sales of over PLN 97 million
GTS Energis, an alternative operator that offers its services to business customers, reported non-consolidated sales of PLN 97.3 million in the third quarter of 2005. This was PLN 4 million more than the combined sales of GTS Polska and Energis Polska in the second quarter, which represents 4% growth. At the end of the year, the company plans to achieve accumulated sales of PLN 376 million.
In the third quarter of this year operating profit at GTS Energis amounted to PLN 13.5 million before depreciation. This was a slight, 2% EBITDA decline compared to the combined results of GTS and Energis in the previous quarter. The company estimates its accumulated EBITDA operating profit for the end of this year at PLN 54.2 million, which accounts for over 14 % of its total sales.
About GTS
GTS Central Europe is a leading provider of integrated telecommunications services in Central and Eastern Europe. GTS owns and operates an extensive fiber optic and data center network throughout the region. In the Czech Republic, Hungary, Poland, Romania and Slovakia, the company combines its regional footprint with deep local networks to deliver a broad range of services. From basic voice and data to complex virtual private networks and managed data center services, GTS assembles the latest technology with its extensive network to provide industry-leading customer solutions. Wit a rich operating history of nearly 20 years in CEE, the company is committed to providing service excellence and value to its 30,000 government, carrier and business customers. GTS is owned by a consortium of leading international private equity firms with extensive experience in the communications and technology industries. For more information, please visit us at www.gtsce.com.
