Cesky Telecom released its Q1 results. While sales were lower than our projections, (mostly due to lower subscription revenues and Eurotel`s contribution to consolidated sales), operating costs decreased more than we expected (especially energy, repairs & maint., and other operating costs, and staff costs). This resulted in EBITDA of CZK 6.8 bil, CZK 0.28 bil. higher than our projection. Foreign exchange gains helped the financial profits; net profit of CZK 1.47 bil was CZK 0.25 bil. higher than our expectations. The pressure on sales seems to be higher than expected, on the other hand the management is able to continue with remarkable cost cutting started in Q4 2001. Therefore, we see the results as neutral-to-positive.
CZK mil. Q1 2002 Q1 2001 Change
Sales 12,812 14,215 -9.9%
EBITDA 6,830 6,738 1.4%
EBIT 2,205 2,711 -18.7%
Pre-tax profit 2,166 2,133 1.5%
Net profit 1,472 1,467 0.3%