O2 Czech CEO Sees Full Dividend Backed by Lower Investments
- Capex to drop in coming years to 5%-6% of revenue from 8%-9%
- Lack of acquisition opportunities supports share buyback plan
This article is for subscribers only.
O2 Czech Republic AS’s declining investments will allow the phone company controlled by billionaire Petr Kellner to keep paying its full profit to shareholders, Chief Executive Officer Tomas Budnik said.
With capital expenditures set to shrink from 2017 and few opportunities to expand through acquisitions, O2 Czech will be left with surplus cash as profits started to rebound this year, Budnik said in an interview in Prague last week. Capex will drop to about 5 percent to 6 percent of revenue in the coming years from 8 percent to 9 percent now, according to the CEO.