Ceske radiokomunikace released parent company six-month CAS figures yesterday. As expected, the figures failed to have an impact on the stock, since the parent company alone represents the smaller part of the stock’s value (RadioMobil and Contactel are not included). The more relevant consolidated IAS six-month figures will not be released until early September. CAS sales were reported at CZK 1,023 mil. (+6% y-to-y), EBITDA at CZK 487 mil. (+1%), EBIT at CZK 57 mil. (-57%), and pretax income at CZK 20 mil. (vs. CZK 549 mil. in H1 1999). The large bottom-line drop y-to-y is due to both a weaker operating performance (weaker margins, higher depreciation charges) and large forex gains that boosted the parent company’s earnings one year ago. Operating figures (Sales, EBITDA, EBIT) as well as the bottom line were slightly below our forecasts.
Ceske radiokomunikace also said that the revenue from compensation by CMobil (to the parent company for diluting the parent company in RadioMobil) should be accounted for this year. The original schedule envisaged the compensation only in 2001, but the parent company’s privatization (to be completed by September 2000) has resulted in an effort to accelerate the compensation. It is not clear to what extent the statement is the parent company’s wishful thinking and to what extent it is a reflection of real progress in negotiations. Even if CR receives the compensation this year, it remains uncertain whether it would be distributed to the shareholders or reinvested.
(Ondřej Daťka)