Ceske radiokomunikace 6M consolidated IAS results, released yesterday, had very little impact on the stock. Net income of CZK 510 mil. was somewhat below our forecast (CZK 524 mil.) and below the market consensus (CZK 561 mil.). The negative surprise was Contactel, whose pretax loss of CZK 484 mil. was larger than we expected; Contactel’s performance was behind the larger-than-expected consolidated operating loss (CZK -271 mil.). However, the consolidated bottom line was saved by RadioMobil, which outperformed expectations with a CZK 1.8 bil. net income (we had forecast CZK 1.4 bil.) and contributed CZK 700 mil. to the consolidated net profit. Nothing of major significance was said at the analyst presentation or during the conference call; most importantly, the company was unable to comment on the much-talked-about possible sales of its investments and assets. Regardless of the figures, there is continued uncertainty as to what extent minority shareholders will be able to benefit from the possible break-up of the group (the break-up value is generally thought to significantly exceed the market price), and yesterday provided no reason for fresh investor interest in the stock. Also, it looks like the purchase agreement between Bivideon (the TDC/Deutsche Bank consortium) and the government could be signed in October. Neutral.
(Ondřej Daťka)