Telefonica CR has just posted its 3Q13 figs, that came fully in-line with consensus on the bottom line. Revenues slightly missed the consensus estimate, especially in the mobile segment. On the other hand, results slightly beat on the OIBDA level due to lower operating costs in 3Q13.
3Q13 results
| CZ Fixed business revenues | 5,24 | 5,04 | 5,05 | -3,9% | -0,2% |
| CZ Mobile business revenues | 6,19 | 5,37 | 5,42 | -13,2% | -0,9% |
| Group total revenues | 12,61 | 11,70 | 11,76 | -7,2% | -0,5% |
| OIBDA | 5,01 | 4,59 | 4,52 | -8,3% | 1,6% |
| EBIT | 2,21 | 1,78 | 1,73 | -19,5% | 2,7% |
| Net income | 1,76 | 1,35 | 1,35 | -23,5% | 0,0% |
9M13 results
| CZ Fixed business revenues | 15,83 | 15,18 | 15,19 | -4,1% | -0,1% |
| CZ Mobile business revenues | 18,53 | 16,64 | 16,69 | -10,2% | -0,3% |
| Group total revenues | 37,82 | 35,65 | 35,72 | -5,7% | -0,2% |
| OIBDA | 14,69 | 13,21 | 13,14 | -10,1% | 0,5% |
| EBIT | 6,20 | 4,88 | 4,83 | -21,4% | 1,0% |
| Net income | 5,02 | 3,74 | 3,74 | -25,4% | 0,0% |
The company reiterates its 2013 guidance of limited margin erosion and capex less than CZK 6 bln and says that its majority owner (Telefonica SA) mulls “strategic alternatives” for its Czech unit. /Overall NEUTRAL results in our view. Investors focus on ongoing negotiations between parent Telefonica and PPF regarding sale of Telefonica’s 69% stake in its Czech unit, which currently drives TEFO2’s share price. According to media the deal could be announced early this week. We think that PPF will not pay significant premium for the majority stake, if any, given its currently high valuation.