The 2000 results released yesterday by EuroTel, a 51%-owned cellular subsidiary of Cesky Telecom, showed continued expansion, as after-tax profit grew 11% to CZK 4.8 bil. on a 39% growth in revenues to CZK 28.3 bil. Operating profit also grew 5.5%. The growth was driven by the very strong 42% increase in Czech cellular penetration and EuroTel’s subscriber base (which doubled to 2.17 mil. users), but margins suffered under the impact of higher acquisition costs and other costs. EuroTel’s deteriorating operating margins had an impact on Cesky Telecom’s consolidated margins but as this was nothing new the results released yesterday do not bring any substantially new information relevant for CT’s stock. Cesky Telecom itself will release detailed 2000 financials on Thursday.
(Ondřej Daťka)