News Parkiet

Politics

Kaniewski may be fired over oil privatization strategy

Opposition deputies say they will push for the dismissal of Treasury Minister Zbigniew Kaniewski over recent changes in petrochemicals industry privatization strategy. Kaniewski, who received the portfolio just a few weeks ago recently announced plans to merge two of Poland?s largest refineries, PKN Orlen and Grupa Lotos. Opposition politicians say they are surprised by the sudden reversal of Treasury?s privatization strategy, while SLD activists from Pomerania, Grupa Lotos home region, don?t like the idea of a merger with much larger PKN, which is based in Płock in central Poland.

Internet

Wirtualna Polska

running out of time

Local court in Gdańsk will decide on the possible bankruptcy of Wirtualna Polska, Poland?s second web portal sometime next week, sources at the company told Parkiet yesterday. Unless its owners end long-running dispute over buyout of minority shareholders, Wirtualna, one of Poland?s oldest web sites may be forced to suspend operations within weeks. Its CEO Marek Borzestowski remains optimistic. "I am convinced bankruptcy administrator will find a new owner for Wirtualna Polska and the portal will continue its operations?, Borzestowski, who co-founded Wirtualna in mid-1990s said during yesterday?s press conference.

Advertisers are already backing away from Wirtualna - one source at the company says its ad sales are down substantially since it filed for bankruptcy several days ago.

Cable TV

Stream Communications to start trading on OTC market

Vancouver-registered cable TV operator Stream Communications has announced its stock has begun trading on US over the counter market, improving liquidity and giving the company an opportunity to raise new funds. Stream operates several smaller cable systems in Southern Poland and is now the country?s ninth largest cable TV provider. The firm wants to double its subscriber base to 80.000 this year. Stream has annual sales of approximately 3 million US dollars.

Clothing

Masters finds new market niche

Shareholders of money-losing jeans maker Masters S.A. have approved statutory changes that will allow their company to diversify into agricultural production. ?It?s still to early to talk about specifics?, says Masters CEO Edward Szałajewski. However, sources close to the company suggest Masters will start production of edible mushrooms. Mr. Szałajewski, himself a major shareholder of the publicly traded company says Masters owns large, undeveloped property that could be used for new agribusiness project.

Airlines

LOT expands its aircraft fleet

Polish Airlines LOT?s first Embraer 170 will enter into service on March 17, CEO Marek Grabarek said at a press conference on Monday. Poland?s national airline has ordered ten new mid-range aircraft from Brazilian manufacturer, with deliveries scheduled until mid-2005. New fleet of Embraer 170?s will support LOT?s expansion in Western and Central Europe.

Banking

Raiffeisen?s Polish unit posts record earnings for 2003

Profits of Raiffeisen Zentralbanks? Polish subsidiary rose nine-fold last year on higher lending to both corporate and retail clients. Raiffeisen Bank Polska said net income was up to a record 86.9 million zloty versus PLN 9.8 million in 2002. Lending was up 40 percent to PLN 5.32 billion. Raiffeisen?s share of bad loans at the year?s end stood at 15 percent compared with an average of 21 percent for the Polish banking industry as a whole.

Telecommunications

Centertel sees at least 12 pct. top-line growth in 2004

Poland?s second mobile phone company, France Telekom and Telekomunikacja Polska subsidiary Centertel wants to at least match this year?s expected 12 percent market growth rate, CEO Sławomir Skrodzki said on Monday. ?We would like our sales to grow faster than market average, wCentertel posted sales of PLN 4.53 billion last year, up 31 percent from the year before. During that period Polish mobile phone market rose 16.7 percent.

PTK Centertel, better known to most Poles by its ?Idea? brand name had a total of 5.7 million subscribers at the end of 2003.