By Leos Rousek
PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR) Wednesday
reported a lower-than-expected net profit in the three months to
end-March, driven by lower sales amid increased competition on the
local mobile services market.
MAIN FACTS:
--Net profit in the first quarter was 558 million koruna ($28
million), down 47% from CZK1.05 billion a year earlier. The result
was below market expectations of CZK701 million in consolidated
profit.
--Operating income before depreciation and amortization, or
Oibda, in the first quarter was CZK3.45 billion, down 16% from
CZK4.10 billion in the year-ago quarter.
--Operating revenue was CZK10.76 billion in the first quarter,
down 9.6% from CZK10.90 billion.
--In January investment firm PPF Group NV, controlled by the
Czech Republic's richest financier, Petr Kellner, completed the
acquisition of a 65.9% stake in Telefonica Czech Republic, valued
at about 2.47 billion euros ($3.39 billion), from Spain's
Telefonica SA (TEF).
--Remaining minority shareholders, holding just over 30% of the
company, are waiting for any details on the expected mandatory
buyout offer for their shares from PPF Group, as required by local
law.
Write to Leos Rousek at leos.rousek@wsj.com
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