By Leos Rousek
PRAGUE--Telefonica Czech Republic AS (BAATELEC.PR) Wednesday
reported a higher-than-expected net profit in the three months to
end-December, driven by a one-off gain in income from a
network-sharing agreement.
MAIN FACTS:
--Net profit in the fourth quarter was 1.95 billion koruna ($98
million), up from CZK1.76 billion a year earlier. The result was
above market expectations for CZK1.42 billion in consolidated
profit.
--Operating income before depreciation and amortization, or
Oibda, including license fees from its network sharing contracts,
was CZK5.27 billion in the fourth quarter, up 3.5% from CZK5.09
billion.
--The company said it would propose a 2013 shareholder
remuneration proposal, ranging between CZK18 and CZK30 per share,
depending on legal analysis of the country's new corporate
code.
--The company has cut its charter capital and taken other
measures to maintain steady dividend payments despite falling
profits. Its dividend for 2012 totaled CZK30 per share.
--Last month 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 ($3.33 billion), from Spain's
Telefonica SA (TEF).
--Remaining minority shareholders of Telefonica Czech Republic
are waiting for a buy offer for their shares from PPF Group, as
required by local law. PPF Group is expected to make its buy out
offer public in coming days.
Write to Leos Rousek at leos.rousek@wsj.com
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