By Sean Carney
PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR), a unit of
Spain's Telefonica SA (TEF), on Tuesday reported a 20% drop in
third-quarter net profit, in line with expectations, as revenues
from both fixed and mobile services declined. However, operating
costs remained broadly flat amid growth in the customer base and an
expansion of business activities.
MAIN FACTS:
--Net profit in the third quarter came in at 1.76 billion koruna
($89.3 million), down from CZK2.21 billion a year earlier. The
result was just a bit better than market expectations for CZK1.75
billion in consolidated profit.
--The company reported a 3.8% drop in revenue to CZK12.59
billion, just under market expectations for CZK12.65 billion.
--Operating income before depreciation and amortization, or
Oibda, fell 12% compared with a year earlier to CZK5.28 billion,
but was the best quarterly Oibda result so far this year.
- The company's full-year 2012 guidance is for Oibda to fall by
as much as 5% on year.
--Total mobile business revenues in the Czech Republic declined
by 6.6% annually to CZK6.19 billion, while total fixed business
revenues fell 5.3% year-on-year in the quarter to CZK5.24
billion.
--Operating costs in the quarter were up 0.4% on year at CZK7.77
billion.
-Write to Sean Carney at sean.carney@dowjones.com
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