News Parkiet

Media

Broker FM's target unrealistic, competitor says

Poland's top commercial radio operator, Kraków-based Broker FM is unlikely to achieve its strategic goal to diversify its revenue stream, competing radio group said in a report yesterday. CR Media, which owns Ad.point radio station group doubts Broker's plans to enter niche radio markets to reduce its share of ad revenues generated by RMF FM pop radio station to less than 65 percent of total sales.

Taxes

Finance Ministry rejects tax changes

Polish Finance Ministry says it no longer wants to harmonize corporate and VAT taxes because of 'political instability'. The government said earlier it would set VAT tax at 19 percent, eliminating several different rates while promising a flat, 19 percent personal income tax in 2007.

Metals

Kęty may buy Romanian building

materials company

Grupa Kęty aluminum packaging maker is considering the acquisition of Romania's Alrom for an undisclosed amount, sources close to the situation told PARKIET yesterday. 'We are talking with four different companies. Huta Aluminium Konin, the aluminum plant is still our main priority, but we are not excluding other acquisitions as well', Kęty's chief executive Jan Kryjak said in a phone interview with PARKIET.

Sources at Alrom, which makes aluminum railings and other building materials refused to comment on the rumors or disclose any details about the Romanian company's financial situation. Earlier this year Grupa Kęty said it plans to spend as much as 550 million zloty ($137 million) on acquisitions.

Information Technology

Investors lose patience with Ster-Projekt

Shares of Ster-Projekt IT services group fell close to a twelve-month low on Wednesday, the day after its auditor said Warsaw-based company has fudged its earnings with a mystery transaction. Ster-Projekt said in an annual report on Tuesday its 2003 earnings totaled just 8.3 million zloty, well below its forecast of PLN 10 million, published before a late fall stock sale. Deloitte & Touche, the auditor, said its earnings would have turned to loss without a last minute, 13.2-million zloty sale of software licenses to an unnamed client. Ster-Projekt refused to name the buyer in this transaction.

Trade balance

C/A deficit wider in April

Poland's current account deficit rose to 611 million euros in April as Polish companies stocked up on goods ahead of EU accession, the central bank said yesterday. Consensus estimates called for CA deficit of just over 400 million euros.