International Property News
CZ - Analysts estimate Telefnica O2's 2007 profit at Kc9.5bn
19th February 2008
The largest telecoms company on the Czech market, Telefonica O2, generated a profit of Kc9.5bn in 2007, 20 percent more year-on-year, according to estimates of analysts polled by CTK.
The results will be published on Thursday.
Atlantik FT analysts predict a profit of Kc10.07bn, Erste a profit of Kc9.47bn.
Sales are expected slightly above Kc63bn, 3 percent more year-on-year.
The segment of mobile communications, SMS and MMS grew by an estimated 5 percent. The number of Telefonica's mobile phone clients rose above 5 million.
The decline in the number of fixed lines stopped thanks to new services like O2 TV and fast Internet access.
The segment of IT solutions for corporate clients increased, also thanks to the acquisition of Deltax System.
The number of clients using CDMA access to the Internet grew to 110,000.
Operating costs increased as well and the growth in profit has therefore largely been achieved thanks to the cut in financial costs and partly a change in the tax system.
Analysts have pointed out that information about the payment of dividends is probably expected more eagerly by investors than the actual results.
Gross dividend is estimated at between Kc42 and Kc45 per share.
Spanish group Telefonica holds about 70 percent in Telefonica O2. The rest of the shares is traded on the bourse.
Telefonica stock sells for some Kc500 apiece at present. The price would not fall even if the results were worse-than-expected because it depends mainly on the development of the global market, the analysts said.
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