Cesky says Eurotel merger will take place in July

28 Apr 2006

Cesky Telecom’s chief executive officer Jaime Smith has confirmed that his company’s proposed merger with its mobile arm Eurotel Prague will be completed in July. The new entity will be known as Telefónica O2 Czech Republic and will trade under the brand name O2. The merger plan was announced at the start of March this year and comes amid increasing competition in the converging Czech telecoms market. Cesky Telecom is 69.4% owned by Telefónica of Spain.

Cesky Telecom posted net profit of CZK2.1 billion (USD92 million) in the three months to 31 March 2006, a rise of 23.1% compared with the same period a year ago, helped by lower depreciation costs. Revenues rose 0.5% year-on-year to CZK14.83 billion, despite a 5.5% fall in income for the company’s fixed line unit to CZK7.54 billion. Eurotel Prague helped offset the decline, reporting a 6.5% rise in sales to CZK7.47 billion on the back of an 8.5% increase in subscribers. The OIBDA margin edged up to 48.5% from 48.3% a year go.

Czech Republic, O2 Czech Republic (incl. CETIN)