Telefonica O2 CR profits leap in 4Q

22 Feb 2008

Czech incumbent Telefonica O2 CR (formerly Cesky Telecom) said its net profit leapt 138% year-on-year to CZK2.8 billion (USD163.8 million) for the three months ended 31 December 2007, on the back of strong demand for mobile and data services, lower costs, and the one-time impact of a deferred tax charge. The operator, majority owned by Telefonica of Spain, said fourth-quarter revenues climbed 1.4% y-o-y to CZK15.9 billion, below a market forecast of CZK16.13 billion in a Reuters poll. Profits in the three months under review were impacted by a one-time gain from deferred tax relating to a government tax reform implemented in 2008. Full-year net income was up 29.5% at CZK10.4 billion, the company said. Operating income before depreciation and amortisation (OIBDA) climbed 14.7% to CZK6.6 billion, beating market expectations of CZK6.49 billion. The OIBDA figure was however, adversely affected by the rollout of the group’s Slovak mobile arm in 2007, it said. Commenting on the results, Telefonica O2 CR chief executive and Chairman Salvador Anglada said ‘These results are fully in line with our targets communicated at the beginning of the year and allow the board of directors to propose a dividend payment of CZK50 per share.’

Czech Republic, O2 Czech Republic (incl. CETIN)