Telefonica Czech Republic AS (BAATELEC.PR), a unit of Spain's Telefonica SA (TEF), Friday reported a surge in fourth-quarter net profit, and proposed an unchanged dividend as well as a share buyback.

 
   MAIN FACTS:

- Fourth-quarter net profit came in at 2.87 billion koruna ($151 million), beating market expectations of CZK2.20 billion and up from CZK1.91 billion a year earlier.

- The company posted a 29% drop from a year earlier in full-year net profit to CZK8.68 billion, largely due to a CZK4.34 billion impairment charge booked in the third quarter.

- The company reported a 4% annual drop in fourth-quarter revenue to CZK13.41 billion, beating market expectations, while its full-year revenue dropped 5.7% annually to CZK52.39 billion.

- Operating income before depreciation and amortization rose 1.2% compared with a year earlier to CZK6.09 billion, while in full-year OIBDA fell 5%, in line with the company's guidance, to CZK22.9 billion.

- The company proposed to pay a dividend of 40 koruna a share and make a 10% share buyback. The proposed dividend includes a CZK13 capital reduction. The total dividend is unchanged on the year.

- Telefonica Czech also presented its outlook for 2012, including improving trends in business revenue compared with 2011 and a limited erosion of its operating margin.

-By Leos Rousek, Dow Jones Newswires; +420 222 315 290; leos.rousek@dowjones.com

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