Telefonica O2 Czech Says Quarterly Net Fell 24% as Customers Cut Spending

Telefonica O2 Czech Republic AS, the largest Czech telecommunications company, said second-quarter profit fell 24 percent as customers cut spending on services and a one-off item from a year ago wasn’t repeated.

Net income for three months ended June 30 was 2.34 billion koruna compared with 3.08 billion koruna a year earlier, the Prague-based company said today in an e-mailed statement. Revenue fell 4.1 percent to 14.06 billion koruna.

Operating income before depreciation and amortization fell 17.2 percent to 5.86 billion koruna in the period from a year ago.

Operating income fell “largely” due to a revenue decline, the impact of a settlement agreement with T-Mobile and the negative effect of restructuring costs taken through the first half of 2010, the company said.

To contact the reporter on this story: Lenka Ponikelska in Prague lponikelska1@bloomberg.net.

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