PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR), a unit of
Spain's Telefonica SA (TEF), Tuesday reported a 23.5% drop in
third-quarter net profit, coming below market expectations, on
lower revenues as flat calling plans for mobile services weigh on
the company's revenue.
MAIN FACTS:
--Net profit in the third quarter through end-September came in
at 1.35 billion koruna ($70.5 million), down from CZK1.76 billion a
year earlier. The result was worse than market expectations for
CZK1.39 billion in consolidated profit.
--The company reported a 7.2% drop in revenue, to CZK11.67
billion from CZK12.59 billion a year earlier. Third-quarter revenue
came in below market expectations for CZK11.76 billion.
--Operating income before depreciation and amortization, or
Oibda, in the three months through to the end of September came in
at CZK4.89 billion, down 7.2% from CZK4.54 billion. Analysts had
expected Oibda at CZK4.92 billion.
--Telefonica's parent has agreed to sell its 65.9% stake in its
Czech unit, valued at about 2.47 billion euros ($3.33 billion), to
PPF Group NV, a Czech-based private equity firm of local
billionaire Petr Kellner. Telefonica will retain a minority stake
of 4.9% in the Czech company after completing the transaction and
will allow PPF Group to use its O2 brand for up to four years.
Write to Leos Rousek at leos.rousek@wsj.com
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