O2 Czech FY 2019 revenue, profits climb on growth in all business segments

28 Jan 2020

Fixed and mobile operator O2 Czech Republic (including CETIN) has published its financial results for 2019, highlighting that total consolidated operating revenue reached CZK38.760 billion (USD1.69 billion, up 2.0% year-on-year, with growing revenue in all segments. Operating revenue in its home market climbed by 2.1% to CZK31.347 billion, driven by a 3.5% improvement in fixed revenue to CZK11.136 billion and a 1.3% y-o-y growth in mobile sales to CZK20.211 billion. In a press release, the PPF Group-controlled telco noted that ‘mobile data, financial services, O2 TV and hardware sales were the key revenue growth drivers’. The Group’s O2 Slovakia business, meanwhile, booked total operating revenue of EUR298 million (USD328.5 million) in FY 2019, up by 2.0% on an annualised basis, noting that – as with the Czech Republic – higher mobile data revenue was the key growth driver. Consolidated EBITDA improved by 13.0% to CZK12.619 billion in 2019, thanks to the higher revenue, flat y-o-y total costs and a positive impact of the new IFRS 16 accounting standard, while net profit edged up 0.2%, reaching CZK5.460 billion. Consolidated capital expenditure totalled CZK2.432 billion in 2019, down by 45.0% y-o-y.

Operationally, the Czech business closed out the year with a total of 462,000 fixed line (voice) telephony subscribers, down 11.5% from 522,000 at end-2018, although thanks to the higher availability of ultra-fast (VDSL, fibre-optic) fixed broadband services in the country, the total number of users climbed 3.2% over the same period, to 835,000. Pay-TV accounts soared 31.4% to 443,000. The Group’s mobile arm had 5.858 million Czech mobile subscribers at end-2019, up 7.2% on an annualised basis, with the company reporting that its new O2 TV tariffs are proving popular, growing by over 100,000 to 443,000 at the end of December. Elsewhere, the Slovak business reported 2.149 million cellular users, up 6% compared to 2.028 million at end-2018.

Czech Republic, Slovakia, O2 Czech Republic (incl. CETIN), O2 Slovakia