Telefonica Czech May Say Profit Fell as Gain Isn’t Repeated

Telefonica Czech Republic AS, the country’s largest phone operator, may say third-quarter profit slumped after a one-time gain on its fixed business re- evaluation from last year wasn’t repeated.

Net income for the three months ended Sept. 30 probably was 2.22 billion koruna ($122.2 million), compared with 6.01 billion koruna a year earlier, according to the median estimate of five analysts in a Bloomberg News survey. The unit of Spain’s largest telecommunication company is scheduled to publish results on Nov. 10.

Telefonica gained 4.34 billion koruna in the third quarter of 2010 after it re-evaluated a loss on fixed-line business originally booked in 2003, the Prague-based company said on Nov. 10 last year. It has been battling a steady decline in earnings, which peaked in 2005, by streamlining operations and dismissing employees.

The company plans to start deploying its fiber-optic network and next-generation mobile technology such as long-term evolution, or LTE, to offset a decline in traditional voice services.

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

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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