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Telefonica 02 CR 1Q net rises 5.4 percent

2008-04-23

Telefonica 02 Czech Republic a.s. (www.czO2.com) reported first-quarter net profit rose 5.4% year-on-year to 2.4 billion crowns (€327 million) on revenues of 15.4 billion crowns, a rise of 1.5%. The number of TV customers increased to 87,000, a net rise of 14,000 subscribers.

Capital expenditure totaled 806 million crowns in the quarter, down about 1% year-on-year. Capex is estimated at about 9 billion crowns for 2008.

The company expects revenues to grow 2-4% in 2008 while OIBDA (operating income before depreciation and amortisation) should rise 0-2%.

"Our strategy in the fixed-line business focusing on growth areas of broadband, IPTV and convergent services resulted in 28% growth of ADSL and IPTV customers compared to the same period last year," CEO Salvador Anglada said in a statement on the website April 24. "At the same time we were able to maintain healthy profitability level while absorbing the impact of the start-up costs of our Slovak operation."

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