PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR), a unit of
Spain's Telefonica SA (TEF), Tuesday reported a 35% drop in
first-quarter net profit, coming below market expectations, on
lower revenues and one-off redundancy costs.
MAIN FACTS:
--Net profit in the first quarter through end-March in at 1.05
billion koruna ($54 million), down from CZK1.62 billion a year
earlier. The result was worse than market expectations for CZK1.17
billion in consolidated profit.
--The company reported a 4.4% drop in revenue to CZK11.90
billion, from CZK12.45 billion a year earlier. The first-quarter
revenue came below market expectations for CZK12.04 billion.
--Operating income before depreciation and amortization, or
Oibda, in the three months through to the end of March came in at
CZK4.35 billion, down 13.9% from CZK5.05 billion. Analysts had
expected Oibda at CZK4.30 billion.
--Telefonica Czech, the largest telecommunications operator in
the country, had earlier announced plans to lay off at least 10% of
its workforce, and to cut costs amid pressures on its fixed-line
and mobile revenues. The costs of the redundancies, which will be
spread out during the year, were booked in the first quarter
--In the year-ago quarter the company booked a CZK220 million
gain from an asset sale which distorts the year-on-year profit
comparisons, the company said.
Write to Leos Rousek at leos.rousek@dowjones.com
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