O2 Czech More Than Doubles Quarterly Profit on Cost ReductionsKrystof Chamonikolas
O2 Czech Republic AS’s first-quarter profit more than doubled as the company cut costs before a planned partition of the business designed to further boost earnings.
Net income for January to March jumped 106 percent to 1.15 billion koruna ($47 million) from a year earlier, the country’s largest telecommunications operator said in a statement on Wednesday. Revenue rose 3.6 percent to 11.2 billion koruna and total operating expenses fell 5 percent to 6.8 billion koruna.
“I believe that we have started a positive trend,” Chief Executive Officer Tomas Budnik said in the statement.
O2 Czech, in which billionaire Petr Kellner’s PPF Group NV owns 85 percent, is battling a drop in calling and data prices that squeezed its 2014 profit to the lowest in more than a decade. Shareholders last month approved a plan to move its networks and data centers into a new company, a spinoff that the management says will streamline operations and drive profits.
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