Telefonica O2 CR Q1 net income down 6.9%; beats market expectations

10 May 2012

Telefonica O2 Czech Republic, which is majority owned by Telefonica of Spain, booked net profit of CZK1.62 billion (USD83.2 million) for its first quarter ended 31 March 2012, down 6.9% from CZK1.74 billion in the year-earlier period, but beating market expectations of profit of CZK1.61 billion. Revenues for January-March were reported at CZK12.47 billion, a 3.3% annual decline and below market forecasts of turnover of CZK12.53 billion. Furthermore, operating income before depreciation and amortisation dropped to CZK4.78 billion, down 5.7% from CZK5.07 billion in 1Q11.

Dow Jones Newswires writes that in the wake of its slightly better-than-expected first-quarter net profit, the carrier confirmed its earlier full-year guidance of ‘improving trends in business revenue compared with 2011 and a limited erosion of its operating margin. Revenue in 2011 dropped 5.7% from 2010, and operating margin stood at 43.7% in FY2011’.

Czech Republic, O2 Czech Republic (incl. CETIN)