Ceske radiokomunikace reported its IAS consolidated H1 results yesterday, which were slightly below our projections due to the higher-than-expected competitive pressure on revenues of the parent company.
The stock did not react to the results, since Radiomobil (the No. 2 domestic cellular operator, 39% owned by Ceske radiokomunikace) had previously reported its main H1 operating figures (sales of CZK 10.1 bil., EBITDA of 4.7; in line with expectations). Radiomobil is the most important asset of Ceske radiokomunikace––its contribution to the consolidated numbers is reflected in the earnings of associates.
CZK mil. 2002 H1 2001 H1 % change
Revenues 1 312 1 375 -4,6%
EBITDA 334 386 -13,4%
EBIT -355 -271 30,6%
Pre-tax income -364 -117 209,8%
Equity in earnings of associate 654 700 -6,6%
Net Income incl. associate 342 510 -33,0%
Ceske radiokomunikace management has indicated that the operating business of the parent company should return to the black at the EBIT level from 2003 and onward, which should not be surprising, as well as rapid decrease of Capex in H1 2002 (-75%).