4Q operations prove resilient, steady distributions to continue
O2 CR has posted 4Q results very much in line with the consensus, excluding a one-off that had a negative impact on the effective tax rate, driven by a (non-deductible) CZK 50m provision for an antimonopoly case fine and deferred taxes. In particular, we saw the company effectively managing the erosion in fixed voice subscribers, while mobile in the Czech Republic and Slovakia surprised to the upside on net subscriber adds and ARPUs. The message on dividends, we believe, is that they are sustainable at the current level (CZK 21/share) for the next several years, but staying comfortably within the company’s 1.5x gearing target. The stock is trading currently right around our price target (PT) of CZK 270/share from August, but the rationale for our BUY recommendation remains intact: stable, if moderate, earnings growth in a predictable competitive environment, and a strong commitment to shareholder remuneration.O2 Czech Republic is a provider of voice, data and other telecommunications services in the Czech Republic. Co. provides telephony services to business and residential customers, operates pay phones, provides cellular phone services, euroISDN, leased lines, Internet and data services (including internet online ISDN services which offer digital connection to the internet network), telephone equipment and other services. Co. comprises two main business segments: the Fixed segment which is telephone services using the fixed telephone network and the Mobile segment which is mobile telephone services provided by Telefonica O2 Slovakia.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.