By Leos Rousek
PRAGUE--O2 Czech Republic AS (BAATELEC.PR) Friday reported a
drop in second-quarter net profit and revenue amid increased
competition in the local mobile services market, but the decline in
earnings was less than market expectations.
Net profit fell 9.6% to 1.22 billion koruna ($59 million) from
CZK1.35 billion in the same period a year earlier. The result was
above market expectations of CZK1.16 billion in consolidated
profit.
Operating expenses declined 8.4% on the year to CZK7.06 billion,
while operating revenue was down 8.1% on the year at CZK11.05 in
the three months to end-June.
Operating income before depreciation and amortization, or Oibda,
in the second quarter was CZK4.13 billion, down 8.6% from CZK4.52
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 O2 Czech, valued at about 2.47
billion euros ($3.39 billion), from Spain's Telefonica SA
(TEF).
PPF is in the process of buying out some of the remaining
minority shareholders in the company, holding just above 30% of its
shares.
Write to Leos Rousek at leos.rousek@wsj.com, @LeoRousek
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