O2 Czech Republic books 4% rise in 2016 net profit

1 Feb 2017

Czech incumbent O2 Czech Republic has posted net profit of CZK5.259 billion (USD209.0 million) for the twelve months ending 31 December 2016, up 3.6% year-on-year as EBITDA increased 3.0% to CZK10.451 billion and consolidated revenues edged up 0.4% to CZK37.522 billion. In a statement O2 CR said it met its goals for the year under review, noting that revenues were stable for the second year in succession. In the Slovak Republic, the group’s operation booked total revenues of CZK6.787 billion, which represents an annual increase of 1.6%.

Revenues in the mobile segment – the biggest single contributor to group turnover – increased by 0.6% y-o-y to CZK19.339 billion, although the carrier reported a decline of voice and SMS revenues due to new roaming regulations and lower prices in the corporate user segment. The group closed out December 2016 with a total of 4.941 million mobile subscribers, up 1% on an annualised basis, in a period in which post-paid users rose 3.7% to 3.356 million; contract users now account for 67.9% of the total base. Meanwhile, pre-paid users declined over the course of 2016, standing at 1.585 million by the year end.

In FY 2016, O2 CR continued to expand the coverage and capacity of its 4G network and claimed that by the year end coverage stood at 99% of the population. Moreover, in the capital Prague and in Brno, O2 CR has embarked on further upgrades using carrier aggregation (CA), deploying a total of 534 base stations with this technology, and tri-band carrier aggregation (3C), which will come on stream in 2017. In other areas of the Czech Republic 2016 saw 4G LTE technology base stations upgraded at 1,500 locations to increase population coverage and speed in accordance with its licence terms. As a result of its efforts data traffic rose by nearly 80% to almost 30,600TB, while the number of customers who use mobile internet via their phones rose 15% to 1.778 million; 56% of handsets in the O2 network fall into the category of being a ‘smart’ device, while a third support 4G LTE. Finally, the number of customers who have exchanged a SIM card for a new one supporting LTE reached almost 850,000 at end-2016.

Revenues in the fixed line segment, meanwhile, declined by 0.9% in FY 2016 to CZK11.563 billion, mainly due to continued growth in revenues from O2 TV and higher income from ICT services. O2 CR reported a total of 221,000 (IPTV and OTT type) internet TV users at 31 December 2016, up by 6.1% y-o-y. The number of customers using the fixed internet (i.e. xDSL) reached 759,000 at the end of 2016, while the ongoing deployment of DSLAMs using higher speed VDSL technology now serves 65% of households, up by ten percentage points in a year. Finally, the total number of fixed lines in service reached 699,000 at the same date.

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

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