News Parkiet

Chemicals

BorsodChem to start trading in Warsaw

Shares of Hungarian chemicals company BorsodChem Rt. will start trading on the Warsaw Stock Exchange today in a second dual listing in Poland. Analysts say institutional investors who bought shares of Europe?s biggest PVC maker can expect small gain at the opening bell.

Public finances

Parliament backs Internet tax breaks

The parliament gave its thumbs up to a proposed tax break for Polish Internet users yesterday. Under the proposal Poles would get a new tax deduction of up to 760 zloty per year to offset higher VAT taxes on Internet access.

Consumer products

Hygienika waiting for new deals with

supermarkets

Hygienika SA, one of Poland?s biggest independent manufacturers of diapers and feminine hygiene products, says it still expects to sign two large contracts to make private label products for supermarket chains ?within weeks?. ?There?s 60 to 70 percent chance that we?ll win both contracts?, chief executive Hubert Stępniewicz told PARKIET yesterday, adding they account for about a third of his company?s annual revenue.

Telecommunications

PTC to buy back debt

Deutsche Telekom unit Polska Telefonia Cyfrowa has confirmed plans to buy back bonds issued in 1999 after securing financing from several international banks. PTC, which is better known in Poland by ?Era? and ?Heyah? brand names, has outstanding bonds worth 415 million euro, plus 140 million dollars. PTC also released preliminary 3Q figures, showing 13 percent increase in sales to PLN 1.7 billion. EBITDA margins was flat compared with the second quarter, at PLN 750 million ($210 million). PTC?s subscriber base grew almost 40 percent year-on-year to just over eight million, or 39 percent of the market.

Information Technology

Sell-off at Prokom picks up

Shares of Prokom Software, Poland?s no. 1 tech stock, plunged as much as 7.7 percent to their lowest in fourteen months yesterday after a string of negative announcements from Gdynia-based company. Prokom, which is controlled by Ryszard Krauze, one of the country?s best known business figures, closed at 143.8 zloty in heavy trading. Analysts say there?s no single reason for yesterday?s drop, citing a list of recent missteps that includes delayed government contracts, wider 1H loss and the sale of a large block of shares by Mr. Krauze in mid-September. Earnings at Prokom, which trades at a P/E of 28 after yesterday?s carnage, won?t recover until the fourth quarter, analysts said.

Apparel

Redan cuts earnings forecast

Łódź-based clothing company Redan SA has decided to reduce its earnings forecast for this year by 25 percent to PLN 15 million because of bad weather this summer. Redan, which is controlled by Polish businessman Radosław Wiśniewski, says it still expects to meet its initial sales target of PLN 220 million, up 67 percent from last year. Sales figures include revenue from Troll clothing outlets Redan bought early this year using IPO proceeds.