Malvido (Telefónica O2) denied the new flat-rate programs could cause 4% decrease in revenue

GM (34,42 USD, 1,56%) Luis Antonio Malvido of Telefónica O2 denied rumors that the new flat-rate calling programs could cause it to lose 4% of its revenue. He said this is nonsense. More than 250,000 people have signed up for the new rates, he said, and he called it a huge success. Several thousand people who had used prepaid cards are among them, he said. In response to rumors that part of O2 CR will be sold, he said the strong domestic investor mentioned in this regard denied it. /Neutral, in the past PPF (potential 4th operator in the CR) was rumored in the past to be a bidder for TEFO2 (288 CZK, -0,52%) stake. We think that under current 4G auction terms it would be more rational for PPF not to build its own business rather than via acquiring a stake in TEFO2. Also we expect some modest negative impact of new free tariffs on TEFO2’s margins in a foreseeable future.