PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR), a unit of Spain's Telefonica SA (TEF), on Wednesday reported a 39% drop in fourth-quarter net profit, above market expectations, on lower revenues. In 2013 the company plans to carry out a share buy-back program equal to up to 2% of its stock, while it expects a minor year-on-year decline in its operating income margin from 41.4% in 2012.

MAIN FACTS:

--Net profit in the fourth quarter came in at 1.76 billion koruna ($89.8 million), down from CZK2.87 billion a year earlier. The result was just a bit better than market expectations for CZK1.74 billion in consolidated profit.

--The company reported a 4.5% drop in revenue to CZK12.82 billion, but above market expectations for CZK12.63 billion.

--Operating income before depreciation and amortization, or Oibda, in the 12 months through to the end of December came at CZK20.92 billion, in line with the company's full-year guidance for Oibda to fall by as much as 5% on year.

--The company's management proposes payments to shareholders in total CZK30 per share, consisting of CZK20 per share in regular dividend and CZK10 per share of capital reduction. The company paid CZK40 per share in total dividends from its 2011 profit.

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