The value of shares in Telekomunikacja Polska S.A. dropped by as much as PLN 50bn
yesterday on the Warsaw’s stock market, after the company announced it would cut dividends this month to PLN 0.50 per share. The company’s shares hit their low right after the opening bell, and concerns over its financial health soared after it announced it would be keeping its forecast for 2013-2014 confidential.
Market watchers predict TP’s stock price will be volatile. In an official statement, TP said it expects the mobile communication market will shrink PLN 2.7bn this year and by another PLN 800m in 2014. “We must manage our debt in this difficult environment in order to keep or position on the market,” said head of TP SA Maciej Witucki. “It’s painful, but necessary, if we want to run this business for another 15 years.”
