O2 Czech Republic says infrastructure assets contribute about 50% of group profit

20 Apr 2015

Incumbent fixed and mobile operator O2 Czech Republic says that the group’s combined infrastructure assets – which are due to be spun out into a separate standalone business – currently generate about half of the group’s total operating profits, Reuters reports. In a statement last Friday, the Czech telco confirmed that the spin-off, which is designed to help revive the firm’s flagging fortunes, will create a new non-listed entity called CETIN, leaving the rump of O2’s operational business as a publicly-listed operator offering a range of voice, data and TV services. In a presentation of the group’s spin-off plans, the telco’s CFO Toms Koura confirmed that O2 and CETIN were roughly equal in terms of their contribution to operating earnings as well as operating cash flow. However, in terms of net profit, the former accounted for about 80% in FY 2014, due to higher write-offs at CETIN. O2 shareholders, including majority owner PPF Group, will vote on the plan at a shareholder meeting on 28 April. CETIN has been valued at CZK46.9 billion (USD1.84 billion), or CZK150 per share for the purposes of the split. Shareholders will get one share in CETIN for each share they hold in O2 CR. Shareholders who vote against will be offered a buy-back of CETIN shares.

Czech Republic,O2 Czech Republic (incl. CETIN),

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