RadioMobil, 39% owned by Ceske radiokomunikace, reported a 2001 IAS net income of CZK 2,54 bil., i.e., 7% above our estimate of CZK 2.38 bil. Revenues (CZK 21.11 bil.) were slightly below our forecast, as was EBITDA (CZK 7.62 bil.). EBITDA margin stood at a better-than-expected 36%, and the company hopes to raise the margin further. RadioMobil said it expects 300,000–500,000 new additions in 2002 (the bottom of this range is in line with our forecast) and hopes to raise its average revenue per user. We were surprised at the relatively high 2001 capex of CZK 14.2 bil.; the company suggested that capex will be substantially lower in 2002. Also, the company further explained its transition from the Paegas brand to the T-Mobile brand this year. Although Ceske radiokomunikace’s 39% stake represents the single largest component of Ceske radiokomunikace stock’s value, we do not think that the information has had nor will have an impact on Ceske radiokomunikace stock price.
(Ondrej Datka)