Poland's Netia cuts sales forecast for 2006

Poland's Netia on Friday cut the forecast for sales from its telecoms operations this year and confirmed the company was heading for a loss.

"The board cuts its forecast for revenues from operational activity to 850 million to 870 million zlotys ($273.2 million)," the telecoms group said in a statement.

"That constitutes a fall of 4.1 to 6.3 percent from 2005. Netia will probably note a consolidated loss this year," it added.

Second-quarter sales will be down by 9 to 10 percent, it said. It had earlier said sales would rise by several percent this year.

The operator said doubts over sales of new products and lower overall tariffs for calls due to regulatory changes were weighing on its results.

Netia posted a surprise first-quarter net loss in May and said its planned investments in the local market would probably keep it in the red for the full year.

Poland's biggest phone operator after dominant phone group TPSA, Netia is investing in a joint venture with Icelandic private equity fund Novator to create the country's fourth mobile operator, P4.

It said it should get a substantial boost from sales of the P4 network next year.

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