News Parkiet

Equity markets

Wienerberger mulls IPO prospects

in Warsaw

Clay brick-maker Wienerberger AG is considering a dual listing on the Warsaw Stock Exchange in addition to the bourse in Vienna, sources told PARKIET recently. ?A couple of weeks ago we?ve looked at the Polish stock market in terms of a possible listing there, but I can?t tell you anything more than that?, Wienerberger?s chief executive Wolfgang Reithofer told PARKIET, adding that speculations about the possible Warsaw IPO are ?premature?.

Wienerberger, which has market value of some 2 billion euros, owns a dozen brick-making plants in Poland. Its Central European unit accounted for one-fifth of last year?s revenue.

Bank Austria AG, former shareholder of Wienerberger, floated some of its stock in Warsaw in late 2003.

Public finances

Government gains on stronger zloty

Poland?s external debt has fallen by as much as 10 billion zloty (more than 1 percent of the GDP) on recent strength of the Polish zloty, pushing the country?s overall debt father away from key ratio that would trigger deep cuts in public spending. By law, Polish government has to start drastic cuts once total public debt exceeds 55 percent of the country?s GDP before the end of this year. At the end of March, Poland?s external debt totaled 29.2 billion euros, up by 2 billion from December 2003.

Chemicals

Boryszew merger delayed

by regulatory approvals

Planned merger of several specialty chemical and building materials manufacturers controlled by the publicly traded Boryszew group has been delayed until the end of this year by regulatory approvals. The group, which is controlled by Polish businessman Roman Karkosik, initially said it would combine with Elana plastic bottle-maker and other firms by August 2004. Sources close to the situation say Boryszew may decide to reapply for the permission of the Polish anti-trust authorities before going ahead with the merger.

Boryszew group is planning annual sales of 1.2 billion zloty. Several days ago it has raised its earnings forecast to 70 million zloty ($19.5 million), or 5.88 zloty per share. On Monday, Boryszew closed at 143 zloty.

Personal finance

Savers see higher returns

after rate increases

Most Polish banks have already adjusted their interest rates after June 20 interest rate hike by the Monetary Policy Council. At least one lender, ING Bank Śląski, fourth largest by the amount of term deposits collected, has moved quickly using higher interest rates to attract more retail customers. ING?s Polish unit has raised the rates for most regular savings accounts to as much as 4.25 percent.

Two of the biggest banks, state-owned PKO BP and Unicredito Italiano?s Pekao SA have decided to keep their interest rates at the existing level. Sources at Bank Pekao, Poland?s largest by net assets, say it will start paying more for long-term savings ?soon?.

Retailing

Artman warns of poor 2Q earnings,

reiterates forecast

Second-quarter sales at Artman SA clothing retailer suffered because of poor weather that forced the company to cut prices for some of its products, chief executive Krzysztof Bajołek told PARKIET yesterday. The stock nevertheless went up 6.8 percent to 22 zloty in the heaviest trading since the IPO in early July.

Artman CEO said this year?s earnings forecast of 6 million zloty is ?not at risk? despite weaker second quarter. Kraków-based firm expects 25 percent increase in sales to approximately 109 million zloty ($30.3 million).

Advertising

Online advertising takes off

Poland?s fledgling online advertising market rose as much as 50 percent in the first six months of this year, two key market players said yesterday. Interia.pl, third largest Internet directory said its cash sales rose almost 70 percent year-on-year. Sources estimate Interia?s 1H cash ad sales at PLN 4Representatives of Onet.pl, Poland?s most popular website also say online ad sales were up at least 50 percent. That compares with total advertising market growth of 7.7 percent in the six months to July.

International Advertising Bureau says last year?s cash sales of Polish online advertisers totaled approximately 48 to 50 million zloty, excluding barter sales and rebates. ITI Group?s Onet.pl estimates it has about 40 percent of the advertising pie.