PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR), a unit of
Spain's Telefonica SA (TEF), Wednesday reported a 17.8% drop in
second-quarter net profit, coming below market expectations, on
lower revenues on fierce competition for cheap monthly calling
plans among all three local operators.
MAIN FACTS:
--Net profit in the second quarter through end-June in at 1.34
billion koruna ($68.3 million), down from CZK1.63 billion a year
earlier. The result was worse than market expectations for CZK1.39
billion in consolidated profit.
--The company reported a 5.8% drop in revenue, to CZK12.01
billion from CZK12.75 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 June came in at
CZK4.79 billion, up 4.5% from CZK4.54 billion. Analysts had
expected Oibda at CZK4.61 billion.
--Telefonica Czech, the largest telecommunications operator in
the country, added 113,000 new cellular customers to the total of
5.1 million at the end of June.
--Telefonica confirms its 2013 guidance for a slight decrease of
its Oibda margin from the level of 41.4% recorded in 2012, the
company said.
Write to Leos Rousek at leos.rousek@dowjones.com
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