T-Mobile CR, the No.2 domestic mobile operator, should improve its top-line performance y-o-y as growth in the number of its clients on the nearly-saturated market still more than offsets expected ARPU decline - mostly a reflection of intensifying competitive pressures on effective tariffs. This should also affect the EBITDA margin (otherwise supported by cost reduction efforts), which is expected to fall by approx. 1% y-o-y, reducing the effect of rising sales on EBITDA. Decreasing financial leverage and a lower CIT rate in the Czech Republic have had a positive impact on T-Mobile CR's net profit, which we expect to almost double Q1 2003 results.
Ceske radiokomunikace holds a 39% stake in T-Mobile CR, which is its most valuable asset.
Jan Hájek