The CR parent company yesterday released its preliminary unconsolidated results for 2000. The market usually ignores these particular figures (yesterday was no exception), since the figures do not reflect the subsidiaries, the most important of which being the cellular operator RadioMobil. The more-relevant consolidated IAS figures will be released March 14.
Preliminary unconsolidated results for 2000 (in CZK mil.):
EBIT 38 (vs. 191 in 1999)
Pretax income 21,818 (vs. 657 in 1999)
After-tax income 15,033 (vs. 450 in 1999)
The increased profits were the result of the one-off CZK 20.4 bil. (USD 535 mil.) compensation by CMobil for the parent company’s dilution in RadioMobil—without this there would have been a y-to-y decline in earnings. This is apparent also in the y-to-y decline in operating profit.
The company’s board reiterated its intention to press for a CZK 10 bil. dividend to be paid out of the 2000 profit, which would amount to a dividend payout of CZK 325 per share. The prospect of a large dividend is the main attraction for investors; on the privatization front, there are fears that the lack of reported competition could lead to a low selling price for the government’s 51% stake in CR.