Telefonica O2 CR sees profits down 35% on falling prices, one-time fees

8 May 2013

Telefonica O2 Czech Republic, a majority-owned subsidiary of Telefonica of Spain, has reported net profit of CZK1.05 billion (USD53.4 million) in Q1 2013, down 35% year-on-year and below a Reuters forecast of net income of CZK1.16 billion, attributable to falling prices and one-time charges related to asset disposals and restructuring fees. Excluding the impact of the one-off charges, the company said net profit would have fallen 10.9% year-on-year, noting that it incurred extraordinary charges arising from the sale of an ‘information line business’ in fiscal 2012 that ‘raised the comparative base and a restructuring charge’ in the first quarter of 2013. Further, the Czech unit reported a 4.4% y-o-y decline in revenue to CZK11.90 billion crowns, a touch below the 11.96 billion estimated in the poll, as mobile revenues dipped by 6.9% to CZK5.68 billion, and fixed revenues fell 5.4% to CZK5.00 billion. On a more positive note, Telefonica O2 CR reported signing up 78,700 net new mobile users in 1Q13, reversing a drop of 3,700 in the corresponding period a year ago, and pushing the total base past five million users.

Czech Republic, O2 Czech Republic (incl. CETIN)