Cesky Telecom’s 9M IAS consolidated results, released yesterday, were very close to market expectations (0 to +1% above Reuters’ consensus), and slightly above our forecasts. The market did not respond to the figures. Performance in Q3 was an extension of the trends seen in Q1 and Q2 — stagnating sales, pressure on margins, and declining EBITDA, EBIT and net income. Net income for the nine months stood at CZK 3.95 bil., vs. the market consensus of CZK 3.93 bil. and vs. our forecast of CZK 3.81 bil. For more detailed comments, see our the attached file with our comment.
Besides, company CFO Juraj Sedivy yesterday confirmed that Cesky Telecom has submitted a new bid for the 49% stake in the Eurotel mobile operator to the other Eurotel shareholders (AT&T and Verizon Communications), but did not reveal any details. Cesky Telecom is trying to negotiate a reduction from the preliminary price agreed in July (USD 1.475 mil./CZK 57 bil.).
(Ondrej Datka)