According to CEZ’s spokesman average wages should rise by about 6%. The average real wages will rise by 3% for the next three years while the remaining c3% reflects inflation. In our model, we calculate a 5% y-o-y increase in nominal wages; hence we consider the news as neutral. Source: CTK
In other news, CEZ’s CEO repeated in a radio debate yesterday that the company will have a net income of over CZK 10bn in 2004 and will use part of it for further investments and dividend payments. Note that, CEZ plans to linearly increase its dividend payments from the current CZK8 to CZK 12 per share by 2006/2007.
Tomáš Gatěk, Patria Finance