By Sean Carney

PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR) won't increase the size of its share buyback this year above the announced level of 2% of outstanding shares and needs no additional financing to execute the plan, its chief financial officer said Wednesday.

"At this stage I don't think you can expect another 1% this year," Chief Financial Officer Jesus Perez de Uriguen said on a conference call. "Regarding the financing of the share buyback program, this year we don't need leverage to finance it at all. In 2013 it's too preliminary to say how we'll finance it but we'll say in the [upcoming] quarterly calls."

The company acquired 1.7 million of its own shares as of July 20, equaling 0.54% of registered capital, at an average price of 383.3 koruna ($18.27) a share using cash on hand for the purchase totaling CZK663 million, the company said.

Telefonica Czech this year approved buying back up to 10% of its shares from the market and said it would aim to buy 2% of shares this year, starting in May.

"Originally we thought it would take a quarter and a half, but we started slowly and will be finalizing [this phase of the buyback] in November or December," Mr. Perez de Uriguen said.

The board of directors at Czech Telefonica, majority-owned by Spain's Telefonica SA (TEF), has proposed to shareholders that all acquired shares be cancelled at the next annual general meeting and to reduce registered capital by the amount of the nominal value of the acquired shares.

Earlier Wednesday, the company reported smaller-than-expected declines in its second-quarter net profit and revenue, but confirmed its full-year guidance.

Write to Sean Carney at sean.carney@dowjones.com

Go to http://blogs.wsj.com/emergingeurope/ for the new Dow Jones blog on Central and Eastern Europe, covering business, politics, society and more, written by our correspondents across the region.

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