Telefonica Czech Rep TECZ 3rd Quarter Results

  Telefonica Czech Rep (TECZ) - 3rd Quarter Results

RNS Number : 3843Q
Telefonica Czech Republic, A.S.
06 November 2012

Telefónica Czech Republic - January to September

2012 Financial Results

November 6, 2012

Telefónica Czech Republic, a.s. announces its unaudited financial results for
January to September 2012. These results are consolidated and prepared
according to International Financial Reporting Standards and fully include the
results of Telefónica Slovakia and other smaller operating companies.

Operational Highlights

· Sound commercial momentum in focused areas sustained despite continued
intense competition:

o Healthy total mobile customers'growth: +2.9% year-on-year to 5 million,
with significant 56.5 thousand net additions in Q3 2012 (in comparison to 29.6
thousand in Q2). Continued sound contract trading and low churn remained the
drivers of the growth. Prepaid base reported strong growth (+29.7 thousand in
Q3 2012), driven by better trading and significant reduction in churn.

o Smartphone penetration growing to 25%, up 7.7 p. p. year-on-year.

o xDSL accesses grew by 5.6% year-on-year reaching 902 thousand, with VDSL
(already over 60% of total accessible base in residential segment) helping to
manage fixed BB ARPU dilution and maintain churn.

o Decline in fixed accesses continued to decelerate: accesses down 5.2%
year-on year, with 63.3 thousand net losses in 9M 2012.

· Consolidated business revenues went down by 3.8% year-on-year reaching
CZK 12,586 million in Q3 2012 (-3.1% to CZK 37,751 million in 9M), in line
with H1 performance.

· Guided OIBDA reached CZK 5,275 million in Q3, up from 5,146 million in
Q2 (CZK 15,469 million in 9M 2012) resulting in healthy 41.9% margin^1 in Q3
(up from 40.5% in Q2) and 41.0% in 9M 2012, on the back of continuous
efficiency agenda in CZ and growing OIBDA in SK. Reported OIBDA reached CZK
5,008 million and CZK 14,690 million in Q3 and 9M 2012.

· Telefónica Slovakia maintained its strong commercial momentum reporting
19.8% year-on-year subscribers' growth (+42.0 thousand in Q3). At the same
time, it further improved its financial performance.

· Long term financial debt successfully refinanced at a competitive

· 2012 full year guidance reiterated for all metrics^2.

· Record date for share capital reduction (CZK 13 per share) set for
14^th November 2012 (ex-date on 12^th November), with payment to commence
starting on 14^th December 2012.

"I am glad that our successful commercial proposition meeting the customers'
needs is reflected in sustainedsolid subscribers' growth in the key areas,
despite continuous competitive pressures. As a result of our customer care
initiatives contract base churn remained low, while performance in prepaid
segment significantly improved in the past quarter delivering positive net
additions. Our enhanced VDSL proposition attracted more customers, which helps
us to better manage fixed broadband ARPU and sustain low churn. In addition,
we see positive impact of our recently introduced smart mobile tariffs, which
include internet in handset service in every package, and our proposition
guaranteeing best price for most selling smartphones, in growing smartphone
penetration as well as increasing number of customers with mobile internet
service. In Slovakia, we delivered another strong set of commercial and
financial results", says David Melcon, the Chief Financial Officer and the
First Vice-Chairman of the Board of Directors of Telefónica Czech Republic
when commenting on the operator's financial results. "Our revenue performance
in this quarter was broadly in line with that reported in the first half.
Mobile revenues reported modest deterioration on the back of worse residential
spend patterns, while revenues decline in fixed business decelerated fuelled
by increasing contribution of ICT services. OIBDA margin reached solid 41.9%,
higher than in previous two quarters, driven by permanent focus on operational
transformation and growing profitability in Slovakia", he adds.

Consolidated Financial Statements

Consolidated business revenues went down by 3.1% year-on-year to CZK 37,751
million in 9M 2012, while in Q3 the decline rate was at -3.8% reporting
total business revenues of CZK 12,586 million in the quarter, largely due to
year-on-year lower mobile revenues. Fixed business revenues in the Czech
Republic declined by 6.0% year-on-year reaching CZK 15,826 million in 9M 2012,
while in Q3 they amounted to CZK 5,242 million resulting in decelerating
decline rate to -5.3% year-on-year due to higher ICT contribution.

Mobile revenues in the Czech Republic reported a 5.2% year-on-year decline to
CZK 18,531 million in 9M 2012, while in Q3 they went down by 6.6% year-on-year
reaching CZK 6,186 million, largely on the back of lower equipment sales. At
the same time, the Company reported continuous solid mobile data revenues
growth and recorded continuous deceleration in spend dilution of its Corporate
and SMB customers, despite prevailing competitive pressure, helped by
successful O[2] Exclusive proposition, while mobile residential spend slightly
worsened. Excluding the impact of MTR cuts, the decline rate would have been
-5.9% year-on-year in the quarter.

At the same time, revenues in Slovakia continued with solid growth and
recorded a 25.0% year-on-year increase reaching EUR 141.5 million in 9M 2012
with a 21.6% year-on-year growth to EUR 48.8 million in Q3 (+33.7% and +29.6%
year-on-year in 9M and Q3 2012, excluding MTR impact).

In Q3 2012, the Company has continued in its effort to deliver efficiencies in
all areas of its operations. Total consolidated operating costs remained
broadly flat (+0.4% year-on-year) in 9M (CZK 23,690 million) and Q3 2012 (CZK
7,765 million) respectively, despite customer base growth and expansion of
business activities. Personnel expenses (excluding restructuring costs)
declined by 7.4% year-on-year in 9M 2012, while in Q3 they went down by 3.3%
as vast majority of the headcount reduction in 2012 happened already in H1
(514 employees optimization in H1 vs. 62 in Q3), while in the previous year,
the Company executed its headcount optimization program largely in H2 (439
employees reduction vs. 192 in H1). As a result, the Group's headcount was
reduced by 12.1% year-on-year to 6,314 at the end of September 2012. Marketing
expenses were broadly flat year-on-year in 9M 2012, while in Q3, they
increased over 20% year-on-year, due to different phasing of marketing
campaigns compared to the same period in 2011. 

Guided Operating income before depreciation and amortization (OIBDA)^3 reached
CZK 5,275 million in Q3 2012, the highest figure in 2012 (CZK 5,049 million in
Q1 and CZK 5,146 million in Q2), while in 9M it amounted to CZK 15,470
million. This represents an 11.7% and 7.9% year-on-year declines in Q3 and 9M
2012 respectively. At the same time guided OIBDA margin reached 41.9% in Q3,
up from 40.5% in Q1 and Q2, while in 9M 2012, it was at 41.0%. This represents
a 2.1 percentage points year-on-year decline in 9M 2012 and 3.6 percentage
points decline in Q3, largely due to different phasing of some OpEx items and
higher marketing activities as already described. Reported OIBDA reached CZK
5,008 million in Q3 and CZK 14,690 million in 9M 2012.

Depreciation and amortization charges went down by 2.5% year-on-year in 9M
2012 (-3.8% in Q3). Consolidated net income amounted to CZK 5,019 million and
CZK 1,764 million in 9M and Q3 2012, down by 13.7% year-on-year in 9M 2012.
This has been driven largely by the decline in OIBDA, which was not fully
offset by lower D&A, net financial and income tax expenses. 

Consolidated CapEx (excluding business acquisitions) reached CZK 3,965 million
in 9M 2012, up by 7.5% year-on-year (+39.5% to CZK 1,792 million in Q3). The
Company continued to direct investments into further capacity expansion and
improvement of the quality of its mobile broadband network, including
backhaul. In addition, CapEx was spent on further expansion of 3G network
coverage, including coverage of currently unserved areas on the basis of the
network sharing contract with T-Mobile. At the end of September 2012, the
Company's3G network covered close to 78% of the population. Additionally,
the Company focused its investments into upgrading its fixed broadband
networks. This allowed it to increase the maximum speed for its VDSL
proposition up to 40 Mbps since the beginning of September. This represents
another step in strengthening of its position in the highly competitive fixed
broadband market in the Czech Republic and customer experience enhancement. In
Slovakia, CapEx was largely spent on additional 3G network expansion. At the
end of September, Telefónica Slovakia covered already 52.1% of the population
with its 3G coverage.

Cash from operating activities declined by 19.9% year-on-year in 9M 2012 (but
only -9.7% in Q3), due to a decrease in OIBDA and different phasing in working
capital cash movements in H1. Cash used in investing activities increased by
6.7%. This is a result of higher proceeds on disposal of fixed assets (driven
by proceeds on disposal of 80% of shares of its subsidiary Informační linky,
a.s. in Q1 2012), which not fully compensated a modest increase in payments
for CapEx. Thus, group free cash flows decreased by 31.7% year-on-year
reaching CZK 6,998 million in 9M 2012. In addition, cash used in investing
activities in Q3 showed an impact of the obligatory temporary warranty (CZK
250 million) paid by the Company in connection with its participation in
Spectrum Auction scheduled for this year. 

The consolidated financial debt amounted to CZK 2,966 million at 30 September
2012, broadly in line with the end of 2011. At the same time, cash and cash
equivalents reached CZK 12,459 million as the Company continued to accumulate
cash for a dividend payment (CZK 27 per share) which commenced on 10 October
and for payment of the amount corresponding to the share capital reduction
(CZK 13 per share), which will commence on 14 December.

CZ Mobile Business Overview^4

In Q3 2012, the mobile business continued to report solid commercial momentum
in all areas. In respect of spend patterns, spend dilution in SMB and
Corporate segments continued to decelerate despite tough competition, helped
by value management initiatives and the O[2] Exclusive proposition, while
residential spend patterns marginally worsened impacted largely by competitive
price pressures and customers savings. In the commercial area, the Company
maintained solid subscribers' growth in the contract segment and significantly
improved performance in prepaid area. In the mobile internet area, the Company
continued in its support of smartphone sales via best price guarantee
proposition for bestselling smartphones. As a result, smartphone sales
represented already close to 72% of total handset sales in Q3 2012 and
smartphone penetration grew further reaching 25% at the end of September 2012,
up by 1.8 percentage points quarter-on-quarter.

The total mobile customer base reached 5,024 thousand at the end of September
2012, a 2.9% year-on-year increase. This performance has been driven by
sustained contract customers growth, whose number went up by 4.8% year-on-year
reaching 3,140 thousand with 26.9 thousand net additions during the quarter.
This growth continued to be supported by customers migrating from the prepaid
to the contract segment, strong customers' increase in Corporate and SMB
segments, increasing smartphone penetration and a low churn. At the end of
September 2012, contract customers accounted for 62.5% of the base, up 1.2
percentage point year-on-year. The number of prepaid customers reached 1,884
thousand at the end of September 2012, down only by 0.2% year-on-year, with a
strong positive net additions of 29.7 thousand in Q3, compared to net losses
of 7.2 and 31.1 thousand in Q2 and Q1 respectively, largely due to lower churn
and lower number of migrations to contract services as a result of successful
propositions and activities focused on improvement of customers' care leading
to higher satisfaction. 

The blended monthly average churn rate reached 1.64% in Q3 2012, down by 0.3
percentage point year-on-year as well as compared to Q2. This is a result of
continuous low contract churn, which reached 0.99% in Q3 2012 and significant
improvement in prepaid churn, which declined by 0.6 percentage points
year-on-year (-0.5 percentage points quarter-on-quarter) reaching 2.72% in Q3
2012 due to above mentioned Company's effort at enhancement of commercial
proposition and customer care. 

In terms of usage, total mobile traffic^5 carried by customers in the Czech
Republic reached 7,081 million minutes in 9M 2012, up by 6.6% year-on-year,
supported by successful propositions for both contract and prepaid customers.

In 9M 2012, mobile blended ARPU^6 was CZK 395.8, down by 7.0% year-on-year,
while in Q3 it went down 6.9% year-on-year, reaching CZK 394.5. ARPU continued
to be impacted by MTR cuts and competition. Excluding the impact of MTR cuts,
total ARPU would have declined by 5.4% year-on-year in 9M 2012 and by 6.3%
year-on-year in Q3. Continuous voice ARPU dilution driven by persisting
competitive pressures and lower residential spend evolution were the key
drivers for the majority of the decline. Contract ARPU reached CZK 528.5 in 9M
2012, down by 9.3% year-on-year and CZK 524.7 in Q3, down 8.7% year-on-year
(-7.8% year-on-year and -8.0% year-on-year in 9M and Q3 2012 excluding the
impact from MTR cuts). Prepaid ARPU decreased by 5.6% year-on-year and 6.1%
year-on-year in 9M and Q3 2012 reaching CZK 176.3 and CZK 177.0 respectively.
Data ARPU declined by 3.9% year-on-year reaching CZK 112.0 in 9M 2012 (-6.3%
year-on-year to CZK 112.4 in Q3) largely due to mobile internet and SMS/MMS
bundling in monthly fees. However pure data ARPU^7 continued to maintain a
solid growth reporting a 6.1% year-on-year improvement in Q3.

Total mobile business revenues in the Czech Republic declined by 5.2%
year-on-year to CZK 18,531 million in 9M 2012, with a 6.6% decline to CZK
6,186 million in Q3. At the same time, mobile service revenues went down by
4.8% year-on-year in 9M and Q3 2012 respectively, broadly in line with Q2
performance. Already mentioned competitive pressures leading to lower spend in
SMB and corporate segments, worse spend patterns in residential segment and
MTR cuts continued to be the key drivers for the decline. Excluding the
impact of mobile termination rate cuts, mobile service revenues would decline
by 4.1% year-on-year in Q3 2012. Despite continued growth in the contract
customer base, revenues from monthly fees increased slightly by 0.3%, reaching
CZK 6,080 million in 9M 2012. Traffic revenues decreased by 11.0% year-on-year
in 9M 2012 to CZK 4,711 million, while in Q3 the year-on-year decline it
slightly decelerated to -9.5%. Interconnection revenues went down by 13.4%
year-on-year in 9M 2012, largely impacted by MTR cuts not fully compensated by
higher incoming traffic. However, in Q3 they went down only by 3.9%
year-on-year as the MTR cut happened only in mid-September. Other revenues
(including SMS & MMS, data and other business revenues) reached in total CZK
5,285 million and CZK 1,774 million in 9M and Q3 2012, representing 1.4% and
3.7% year-on-year decrease with more SMS/MMS bundling putting pressure on
them. At the same time, revenues from mobile internet remain the key growth
driver of non-SMS data revenues (+8.8% year-on-year in Q3).

CZ Fixed Business Overview^8

In Q3 2012, the Company successfully continued addressing the demand for fixed
broadband services via its enhanced VDSL proposition, which led to solid
commercial performance of the broadband customer base and maintained same
fixed access losses seen in Q2. At the same time, revenues showed improved
year-on-year dynamics compared to Q1 and Q2 helped by higher ICT revenue
contribution. Continuous migration of existing ADSL customers to the VDSL
service helped the Company to decelerate fixed broadband ARPU dilution and
improve churn, which is relevant in a highly competitive and slowing fixed
broadband market environment. 

The total number of fixed accesses declined by 5.2% year-on-year reaching
1,519 thousand at the end of September 2012, with 63.3 thousand net losses
during 9M 2012. This represents a 6.0% reduction compared to 9M 2011 and is
largely a result of solid 23.3% year-on-year growth of naked accesses and
continuous growth of Voice-over-IP lines. 

The number of xDSL accesses reached 902 thousand at the end of September 2012,
up by 5.6% year-on-year. In respect of VDSL, 238 thousand customers have
already subscribed for the upgraded service, which represents 30% of the total
xDSL residential base and 62% of the total addressable existing base (~ 50% of
households). In Q3 2012, the number of VDSL customers grew by 31 thousand. The
total number of O2 TV customers reached 140 thousand at the end of Q3 2012,
+7.0% year-on-year, a relevant achievement in stagnant Pay TV market in the
Czech Republic.

Voice traffic generated in the fixed network went down by 13.2% year-on-year
in 9M 2012 to 990 million minutes, still impacted by fixed telephony line
losses and the fixed to mobile substitution effect.

In 9M 2012, total fixed business revenues went down by 6.0% year-on-year
reachingCZK 15,826 million, while the decline rate slowed down to -5.3%
year-on-year in Q3 to CZK 5,242 million. Revenues from traditional accesses
fell by 15.4% year-on-year reaching CZK 2,780 million in 9M 2012 due to
continuing fixed telephony line losses, while revenues from traditional voice
revenues went down by 6.7% year-on-year to CZK 4,763 million (-6.1%
year-on-year in Q3), largely due to lower revenues from communication traffic
(in line with lower voice traffic). Internet & broadband revenues were flat
year-on-year reaching CZK 4,531 million in 9M 2012, as a result of xDSL
customer growth, migration of higher value customers to VDSL and competitive
ARPU pressures. IT services and business solutions revenues went up by 4.8%
year-on-year reaching CZK 1,509 million in 9M 2012, while in Q3 the growth
rate accelerated to 9.3% year-on-year. The Company successfully continued
with penetration of standard and recurring ICT services for business customers
(Managed Services/Cloud/Security/Virtual Desktop) to mitigate dependence on
one-off projects, which shall help it to generate sustainable revenues.


Telefónica Slovakia delivered another strong set of commercial and financial
results in Q3, which resulted in the further strengthening of its position in
the Slovak mobile market. At the same time, its results continue to increase
their contribution to the Group's financial performance. At the end of
September 2012, the total number of customers reached 1,292 thousand, posting
19.8% year-on-year growth. In Q3 2012, their number increased by 42.0 thousand
driven largely by strong performance in the contract base supported by the
successful launch of the new tariff O[2] Paušál targeting higher value
customers. The number of contract customers grew by 37.4% year-on-year
reaching 611 thousand at the end of September 2012 (+36.7 thousand in Q3, 6.7%
more compared to Q3 2011), while the number of prepaid customers increased by
7.4% year-on-year ending up at 681 thousand. Consequently, the customer mix in
Slovakia further improved and contract customers represented an already
significant 47.3% of the total customer base, up by 6.1 percentage points

In terms of financial performance, the total revenues of Telefónica Slovakia
in local currency increased by 25.0% year-on-year reaching EUR 141.5 million
in 9M 2012 (+21.6% year-on-year in Q3). Excluding the impact of MTR cuts, the
growth rates would be 33.7% and 29.6% in 9M and Q3 2012 respectively, fuelled
by customer growth, improving customer mix and the company's focus on
acquiring higher value customers. Thus revenues in Slovakia represented nearly
10% of total Group revenues in 9M 2012. At the same time, in 9M 2012, OIBDA
for Telefónica Slovakia went up by 65.4% year-on-year with a 3.9%
quarter-on-quarter growth in Q3, thus helping to support the Group's
profitability. In Q3 2012, contractARPU reached EUR 16.1, while prepaid ARPU
was at EUR 8.0.

Other relevant facts

Acquisition of the business parts of Global Care group

On 3^rd September 2012, Telefónica Czech Republic announced that via its
subsidiary Bonerix Czech Republic s.r.o., it had signed the agreement related
to the acquisition of five parts of enterprises of Global Care Group (Global
Care, s.r.o., TMT Czech, a.s., Hermod, a.s., Česká servisní a správní, a.s.,
LAKENSIS, a.s.). The transaction is valued over CZK 300 million.

Thus, Telefónica Czech Republic will be able to provide a relevant customer
care also to other corporate customers within the employee programs. This will
widen number of services proposition, which they will be able to order within
their programs. For some 70 thousand customers, who were served by the
companies in Global Care Group provisioning of telecommunication services,
conditions of these contracts remain unchanged.

Legal action by České Radiokomunikace for compensation of damage

On 14^th September 2012, Telefónica Czech Republic received a legal action for
a compensation of damage, in which the company České Radiokomunikace, a.s.
demands a compensation of the damage of CZK 3,107,900,211 for an alleged break
of Section 11, par 1 of the Act on the protection of competition consisting in
alleged abuse of dominant position in the form of margin squeeze.

Contract for 4-year term loan facility worth CZK 3 billion

On 27^th September 2012, Telefónica Czech Republic it signed the CZK 3 billion
credit facility jointly arranged by UniCredit Bank Czech Republic, a.s., (also
acting as an agent), Česká spořitelna, a.s., Komerční banka, a.s., Citibank
Europe plc and Československá obchodní banka, a. s.

The company will use the 4-year term loan facility for refinancing of the debt
due in 2012 and for general corporate purposes. The loan facility is priced at
3M PRIBOR plus margin 1.75%, currently representing significant saving in
financial costs compared to the previous debt facility (due in 2012). At the
same time, the refinancing enables the company to maintain its flexibility in
managing the business in agile way.

Registration of the registered capital reduction in the Commercial Register
and payment to shareholders

In accordance with the rules approved in the company's General Meeting
resolution from 19^th April 2012 on reduction of the registered capital the
Board of Directors of Telefónica Czech Republic notified on 19^th October
2012, that on 17^th October 2012, a resolution of the Municipal Court in
Prague had took legal effect on the basis of which the reduction of the
company's registered capital pursuant to the General Meeting resolution shall
be registered in the Commercial Register on 14^th November 2012.

In accordance with the General Meeting resolution, the date decisive for
determining persons entitled to payment of the amount corresponding to the
reduction of nominal values of company's shares shall be 14 November 2012.

In accordance with the General Meeting resolution, the company's Board of
Directors also notified the following details for the purposes of payment of
the aforementioned amount:

a) The amount to be paid: CZK 13 per share (before tax) per share with the
nominal value of CZK 100 and CZK 130 per share (before tax) to each share with
the nominal value of CZK 1,000.

b) The respective amount will be paid to persons who will be identified as
company's shareholders according to the state in the excerpt from the
statutory register as of the date of registration of the reduction of the
company's registered capital in the Commercial Register (i.e. as of 14^th
November 2012), which excerpt is to be ensured by the Company (unless it is
proven that the record in the register fails to comply with reality).

c) The payments shall commence starting on 14 December 2012.

d) The payment (including the calculation of the tax securement to be
deducted in case of certain Czech tax non-resident shareholders) will be
effected by Česká spořitelna, a.s., Company Registration No. 45244782, based
at Olbrachtova 1929/62, 140 00 Praha 4.

The full wording of the notification on registration of the registered capital
reduction in the Commercial Register and of payment to shareholders can be
downloaded on company' web page


The consolidated balance sheet and income statement of Telefónica Czech
Republic prepared in accordance with International Financial Reporting
Standards (all figures in CZK million).


Investor Relations

Telefónica Czech Republic, a.s.

t +420271 462 076

    About Telefónica Czech Republic

Telefónica Czech Republic is a major integrated operator in the Czech
Republic. It is now operating almost eight million lines, both fixed and
mobile, making it one of the world's leading providers of fully converged
services. The organization offers the most comprehensive portfolio of voice
and data services in this country. It is paying special attention to the
exploitation of the growth potential, particularly in the data and Internet
sector. Telefónica Czech Republic operates the largest fixed and mobile
network including a 3rd generation network, CDMA (for data), and UMTS,
enabling voice, data and video transmission. Telefónica Czech Republic is also
a notable provider of ICT services.

About Telefónica

Telefónica is one of the largest telecommunications companies in the world in
terms of market capitalisation and number of customers. From this outstanding
position in the industry, and with its mobile, fixed and broadband businesses
as the key drivers of its growth, Telefonica has focused its strategy on
becoming a leading company in the digital world. The company has a
significant presence in 25 countries and a customer base that amounts more
than 300 million accesses around the world. Telefonica has a strong presence
in Spain, Europe and Latin America, where the company focuses an important
part of its growth strategy. Telefonica is a 100% listed company, with more
than 1.5 million direct shareholders.

INCOME STATEMENT                                  Jan - Sep 2012 Jan - Sep2011
Business revenues                                         37,751        38,977
Other recurring revenues                                      73            61
Revenues                                                  37,824        39,038
Internal expenses capitalized in fixed assets                470           460
Operating expenses                                      (23,690)      (23,602)
Other operating income/(expenses)                          (165)         (145)
Gain on sale of fixed assets                                 270           205
Impairment reversal/(loss)                                  (19)           (7)
OIBDA                                                     14,690        15,949
Depreciation and amortization                            (8,488)       (8,702)
Operating Income                                           6,202         7,247
Net financial income (expense)                             (123)          (62)
Income before tax                                          6,079         7,185
Income tax                                               (1,060)       (1,369)
Net Income                                                 5,019         5,816
BALANCE SHEET                                         30.09.2012    31.12.2011
Non-current assets                                        68,382        73,100
- Intangible assets                                       6,712         7,205
- Goodwill                                               13,490        13,453
- Property, plant and equipment and investment           47,457        51,525
- Long-term financial assets and other                      120           171
non-current assets
- Deferred tax assets                                       603           746
Current assets                                            20,972        15,881
- Inventories                                               461           488
- Trade and other receivables                             8,042         8,166
- Current tax receivable                                      -           165
- Short-term financial investments                           10           106
- Cash and cash equivalents                              12,459         6,956
Non-current assets classified as held for sale                 -             1
Total assets                                              89,354        88,982
Equity                                                    63,813        69,097
Non-current Liabilities                                    3,349         3,870
- Long-term financial debt                                    -             -
- Deferred tax liabilities                                3,251         3,737
- Long/Term Provisions                                       24            26
- Other long/term liabilities                                74           107
Current Liabilities                                       22,192        16,015
- Short-term financial debt                               2,966         3,061
- Trade and Other payables                                8,535        10,495
- Current income tax payable                                 32             5
- Short-term provisions and other liabilities            10,659         2,454
Liabilities assoc. with non-current assets                     -             -
classified as held for sale
Total Equity and Liabilities                              89,354        88,982


^1OIBDA before brand fees & management fees (CZK 834 million in 9M 2011 and
CZK 780 million in 9M 2012) over Business revenues; 2012 guidance excludes
changes in consolidation, includes potential capital gains from non-core asset
sales, assuming constant FX rates of 2011

^2Business Revenues: improving trends compared to 2011 (2011 base: -5.7%
year-on-year), OIBDA margin: limited margin erosion year-on-year (2011 base:
43.7%), CapEx: up to CZK 6.2 billion (excluding business acquisitions).

^3In terms of the 2012 guidance calculation, OIBDA excludes brand fees and
management fees (CZK 834 million in 9M 2011 and CZK 780 million 9M 2012),2012
guidance excludes changes in consolidation, includes potential capital gains
from sales of non-core asset, assuming constant FX rates of 2011.

^4Figures are shown net of inter-segment charges between fixed and mobile

^5Inbound and outbound, including roaming abroad, excluding inbound roaming

^6Including inter segment revenues

^7Big screens, small screens, M2M, time/usage based, push email, data roaming

^8Figures are shown net of inter-segment charges between fixed and mobile

                     This information is provided by RNS
           The company news service from the London Stock Exchange


QRTEANFSEFPAFFF -0- Nov/06/2012 07:00 GMT
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