Netia CEO resigns as firm cuts 2014 guidance

Polish IPTV service provider Netia has said CEO Mirosław Godlewski is resigning from the firm, after announcing underwhelming full-year 2013 results and cutting its guidance for 2014.

In a statement, Netia said that Godlewski, in agreement with the company board, had decided to stand down by August 31 at the latest, but has “contractually agreed” to remain in place until his replacement is found.

The news came as Netia reported a 12% year-on-year drop in full year revenues, which came in at PLN1.876 billion (€443 million) – lower than the firm’s original guidance of PLN1.925 billion.

Adjusted full year EBITDA was down 7% year-on-year at PLN551 million, but surpassed Netia’s original target of PLN525 million.

In spite of this, the firm cut its full year targets for 2014 to revenues of PLN1.735 billion and adjusted EBITDA of PLN505 million as it aims to shore up its business and cut costs.

“Management expects 2014 to be a year of consolidation with a focus on providing the foundations for the newly established B2B and B2C Business Units,” Netia said in a statement.

“While Management expects to continue growth in on-net services with broadband, TV and B2B services all registering growth, the short-term priority will be to add additional product features, improve processes and reduce the cost base in order to sell more effectively in subsequent years.”