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TEF Telefonica SA

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Share Name Share Symbol Market Type
Telefonica SA BIT:TEF Italy Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.00 -

Czech O2's Net Profit Declines Less-Than-Expected on Cost Cuts

01/08/2014 9:19am

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Telefonica (BIT:TEF)
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  By Leos Rousek 

PRAGUE--O2 Czech Republic AS (BAATELEC.PR) Friday reported a drop in second-quarter net profit and revenue amid increased competition in the local mobile services market, but the decline in earnings was less than market expectations.

Net profit fell 9.6% to 1.22 billion koruna ($59 million) from CZK1.35 billion in the same period a year earlier. The result was above market expectations of CZK1.16 billion in consolidated profit.

Operating expenses declined 8.4% on the year to CZK7.06 billion, while operating revenue was down 8.1% on the year at CZK11.05 in the three months to end-June.

Operating income before depreciation and amortization, or Oibda, in the second quarter was CZK4.13 billion, down 8.6% from CZK4.52 billion.

In January investment firm PPF Group NV, controlled by the Czech Republic's richest financier, Petr Kellner, completed the acquisition of a 65.9% stake in O2 Czech, valued at about 2.47 billion euros ($3.39 billion), from Spain's Telefonica SA (TEF).

PPF is in the process of buying out some of the remaining minority shareholders in the company, holding just above 30% of its shares.

Write to Leos Rousek at leos.rousek@wsj.com, @LeoRousek

Go to http://blogs.wsj.com/emergingeurope for the new WSJ and Dow Jones blog on Central and Eastern Europe, covering business, politics, society and more, written by our correspondents across the region.

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