The České radiokomunikace AGM decided to retain all its 2003 profits yesterday; the company expects the first dividends from T-Mobile CR, its 39%-owned subsidiary, to be obtained in 2006 or 2007. The above is in line with our long-held assumption that T-Mobile CR dividends will not be paid before 2006, based on our projections and the rather vague definition of T-Mobile CR's dividend policy: dividends will be paid (with an 85% POR) once the company's "financial assets exceed financial liabilities".
Separately, Cra is considering three acquisition opportunities among domestic alternative operators: Aliatel, Contactel and GTS. Possible acquisitions should be financed externally (either through debt or a share capital increase). While consolidation of the fragmented domestic alternative operators is expected and Cra has already declared its acquisition intentions, the financial health of the possible targets remains a challenge. Note, that the first two companies mentioned are heavy loss makers at both the EBIT and net levels. Source: Reuters, CTK.
Jan Hajek