Telefonica O2 CR reports solid Q4 and FY2012 results

27 Feb 2013

Telefonica O2 Czech Republic has announced stable financial results for the fourth quarter and full-year 2012 – in line with the company’s guidance. The operator said that FY2012 consolidated business revenues decreased by 3.5% year-on-year to CZK50.035 billion (USD2.56 billion), due to pressure of competition on the telecoms market coupled with regulatory measures. In the fourth quarter, revenues amounted to CZK12.783 billion, it said. Operating income before depreciation and amortisation (OIBDA) for the full year stood at CZK19.781 billion, down 9.2% from the CZK21.790 billion reported in FY2011. Fourth-quarter OIDBA was CZK5.091 billion – the highest quarterly figure recorded in 2012, it said. Revenues derived from mobile non-SMS data services reached CZK2.683 billion last year, up from CZK2.499 billion in FY2011. Telefonica O2 CR says it plans to invest up to CZK6 billion in fiscal 2013, mainly in developing new fourth-generation Long Term Evolution (LTE) technologies and networks.

Operationally speaking, the telco succeeded in improving its market position, with its number of mobile customers increasing by 2.9% to 5.083 million in 2012; of these, 3.192 million were contract customers (up 4.7% y-o-y). An increase was also reported in terms of smartphone take-up, which reached 27% of the total user base by 31 December 2012. Furthermore, Telefonica O2 CR said smartphones made up as much as 72% of newly sold phones last year, with interest in mobile internet growing strongly as well. To meet pent up demand for mobile data, the operator launched a new range of smart tariffs in June 2012, dubbed ‘Chytre Tarify’, offering integrated voice calls, internet access and free SMS messaging within the O2 network in a single package. The popularity of the new product means that today, 58% of its customers activating a new tariff are selecting one with mobile internet access, it said. The mobile arm launched the country’ s first commercial LTE network, in Jesenice u Prahy, in June 2012. Mobile network traffic grew by 7.1% in 2012, reaching a total of 9.59 billion call minutes.

In the fixed market segment, the carrier’s business also reported solid results with the number of xDSL internet access users increasing by 5% in the year to 912,000. The company added that 32% of these users (roughly ) are connected via VDSL broadband technology, noting that in September last year, connection speeds for its residential service – O2 Home Internet [O2 Internet na doma] – increased to up to 40Mbps, while the tariff prices remained unchanged. Telefonica O2 CR also reported that the number of O2 TV users reached 141,000 at end-2012, marking a 4.3% increase y-o-y.

Czech Republic, O2 Czech Republic (incl. CETIN)