O2's revenue grows to Kc28.6bn, net income falls in Jan-Sept

Prague, Nov 1 (CTK) - O2 Czech Republic mobile operator saw its consolidated revenue go up by 1.4 percent yr/yr to Kc28.62bn in the first nine months of the year, with consolidated net income falling by 4.6 percent to Kc4.02bn because of higher depreciation charge, O2 said in a press release today.

Q3's fall slowed compared to the previous quarters.

Both fixed and mobile revenue grew by 1.2 percent to Kc8.1bn and Kc15bn, respectively, thanks to mobile data, and financial and O2 TV services.

The profit went down owing to high investments in 2018, which increased depreciation charge this year.

EBITDA (earnings before interest, taxes, depreciation and amortisation) grew by close to 2 percent to Kc9.3bn.

"High investments in 2018 ... diluted our net profit in 2019," said Tomas Kouril, the company's CFO and board of directors deputy chairman.

"We directed our investments into pro-growth areas in which, together with our new commercial proposition, it contributes to further growth. Our EBITDA increased, the net profit is showing an improving trend, and our strategy works," Kouril said.

The total number of mobile registered customers reached 5.617 million at the end of September, of whom 3.215 million were mobile contract customers.

In the O2 network, smartphones represent 75 percent of handsets, the operator said.

The larger portion of data volumes included in free tariffs along with customers' interest in O2 data tariffs contributed to a 30 percent year-on-year increase in mobile data usage generated in handsets.

The number of O2 TV tariffs customers provided over O2 fixed line as well as over Internet connection from any provider reached 406,000, a third more than last year. The number of broadband Internet customers grew by 21,000 to 830,000.

"Our results show that the decision to offer customers home broadband Internet, O2 TV and mobile tariffs in O2 Spolu packages was right," said Jindrich Fremuth, CEO and chairman of the board of directors of the mobile operator.

"Currently, 70 percent of our customers activate new mobile tariff in a package, and a third of them choose a tariff with unlimited data," he said.

"In the rich sports content offering, we have newly included the English Premier League, confirming O2 TV's position as a TV platform offering the best sports and movie content in one place," Fremuth said.

Slovak subsidiary O2 Slovakia raised revenue by 2.6 percent to Kc5.67bn. Active customers numbered 2.1 million and the number of mobile contract customers reached 1.36 million.

Operating results surpassed expectations thanks to higher sales costs savings, said J&T Banka analyst Milan Vanicek.

Q3 sales amounting to Kc9.7bn were in line with expectations. The Slovak result for the third quarter was worse than expected as in crowns it was a 1 percent drop, while the bank's estimate was a rise of 3.6 percent, said Vanicek.

O2 is over 80 percent owned by PPF investment group of the richest Czech Petr Kellner.

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