Poland’s TPSA reported falls in Q4 revenue and net profit, as the country’s telecoms market starts to undergo what its CEO described as “its most radical change ever”.

The operator also reported falls in revenue and net profit for full-year 2012. And its guidance was for another fall in revenue in 2013, as well as a further dividend cut.

In a statement, Maciej Witucki, TPSA’s CEO, said the market change was “driven by endless MTR cuts and irresponsible price wars in the mobile post-paid market in particular. This is forcing major adaptation at Orange Polska too, because the company’s future is at stake”.

Parent Orange put out a statement saying its subsidiary’s results would not impact its own financial outlook for 2012 and 2013.

TPSA’s Q4 revenues declined by 6.4 per cent to PLN3.48 billion ($1.12 billion) on a pro forma basis (the 2011 figure was adjusted for deconsolidation of Emitel and Paytel). The company’s net income fell by 86 per cent to PLN51 million.

The company’s full-year 2012 revenue fell by 4.1 per cent to PLN14.14 billion, again on a pro forma basis. Net income fell by 55.4 per cent to PLN855 million.

The mobile unit reported a 6.3 per cent decline in Q4 revenue. For the full year, it reported a slight (0.3 per cent) revenue increase, if the impact of regulation was excluded. Once the impact of MTR cuts were included, the revenue figure fell by three per cent for 2012. The mobile operator’s subscriber base grew by 1.6 per cent during 2012.

Nevertheless, Witucki said the company had a medium-term plan to turnaround the business. “We will develop a new business model to work in an environment where growth is no longer a given, and where capital allocation has to be prioritised carefully, as cash is more scarce,” he said, in a statement. The aim would be “a much leaner, more flexible and monetisation-driven organisation”, he said.

TPSA also said that it planned to merge with its mobile arm, in which it already holds a 100 per cent stake. There would be several advantages to such a move including offering convergent services and unified customer care, said the company.

According to Wireless Intelligence, the mobile unit is Poland’s second largest operator with 14.89 million subscribers, just behind rival T-Mobile with 15.45 million subscribers (Q4, 2012 figures).