Cesky Telecom - financial results for 1H04 beat market expectations

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Investiční bankovnictví KB

      Cesky Telecom announced its financial results for 1H04 according to IFRS. Direct y/y comparison is not possible, as Cesky Telecom owned only 51% of Eurotel in 1H03. The financial results beat the market expectations in all followed items. Revenues rose by 22.6% to CZK 31.1bn particularly thanks to full consolidation of Eurotel. As the structure is concerned, the decline of revenues from voice services in both fixed line and mobile businesses continues. On the contrary, demand for data services remains strong. The company continues focusing on ADSL services and data services over mobile. Despite the strict control of operating costs EBITDA margin declined to 49%, which is however still one of the highest in the industry. Net profit rose to CZK 3.3bn putting the net margin to 10.7% up from 9.0% in the same period last year.

       We expect neutral share price reaction to the announced figures. Although the company beat the market expectations, the factors influencing the results remain the unchanged.

      

       IFRS consolidated, CZK m............1H04...........1H03.........%ch

       Revenues................................31,143.........25,410.........22.6

       EBITDA....................................15,178.........12,486.........21.6

       EBIT.........................................4,737...........3,246.........45.9

       Net profit...................................3,331..........2,277.........46.3

       Source: company data

      

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