Telecommunication Business

Telecommunication Business

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  • Anna Halaczkiewicz
    Anna Halaczkiewicz    Premium Member   Group moderator
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    Telefonica Czech Republic: Q1 2011 net profit down 13.5%
    Mobile operator Telefonica Czech Republic had a CZK 1.74bn (€71.2m) net profit in Q1 2011, 13.5% less than in Q1 2010, on revenues of CZK 12.87bn (€526.8m), 6% less year on year. Mobile revenues fell by 8.6% to CZK 6.42bn (€262.8m), while fixed-line revenues dropped by 8.3% to CZK 5.64bn (€230.9m). The total retail subscriber base decreased by 2.5%.

    According to Telefonica Czech Republic’s CFO Jesus Perez de Uriguen, cited by the CTK news agency, the results correspond with the tough competitive market environment. He added that regulatory measures (MTR cuts) and the slow recovery of consumer spending, particularly in the mobile revenue segment, also had negative impacts.

    The mobile client base decreased by 2.5% compared to Q1 2010, to about 4.83 million, mainly due to the loss of pre-paid users as well as a one-off loss of 111,000 inactive post-paid SIM cards disconnected in June 2010. The operator increased its post-paid client base by 1.5% year on year, and by 36,000 net additions in Q1 2011, so that post-paid SIM cards now account for 60% of the total mobile client base, up 2 p.p. from a year ago. Mobile monthly ARPU decreased by 7.6% to CZK 424.5 (€17.4) in Q1 2011.

    The number of fixed-line telephony subscribers fell by nearly 6% with 30,000 net disconnections in Q1 2011. There were 17,000 net additions of fixed-line broadband internet connections, on the other hand, bringing their total to about 770,000, an 8.7% year on year increase. The Pay TV subscriber base decreased by over 6% year on year to 129,000, remaining flat quarter on quarter.


    Find out more here:
    http://www.ceeitandtelecom.com/104573/Telefonica-Czech-Repub...