November 1, 2019 / 5:38 AM / 13 days ago

O2 Czech Republic's profit decline slows in third quarter

PRAGUE, Nov 1 (Reuters) - Fixed and mobile operator O2 Czech Republic posted on Friday a 1.5% drop in third-quarter profit, less than expected as a net income decline caused by higher depreciation and amortisation charges this year after 2018 investments slowed.

Net profit for the group, majority owned by the Czech Republic’s richest businessman Petr Kellner, dropped to 1.42 billion crowns ($62.05 million) in the quarter, above the average estimate of 1.36 billion crowns seen in a Reuters poll.

Profit had dropped 5-7% year-on-year in the previous two quarters.

“High investments in 2018 increased depreciation charge and diluted our net profit in 2019,” Chief Financial Officer Tomas Kouril said, adding those investments would add to growth.

Revenue in the quarter was up 0.3% at 9.65 billion crowns while earnings before interest, tax, depreciation and amortisation (EBITDA) grew 10.1% to 3.26 billion crowns, helped by lower costs and operating expenses.

$1 = 22.8830 Czech crowns Reporting by Jason Hovet

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