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Telefonica announces good Q4 2012 and full-year 2012 results
[February 28, 2013]

Telefonica announces good Q4 2012 and full-year 2012 results

(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 28 February 2013 Release date- 27022013 - Telefonica Czech Republic announces its financial and operational results for the year 2012.

Despite strong competitive pressure, the company has succeeded in improving its position on the market, with its number of mobile customers increasing in 2012 by 2.9% to 5.08 million. An increase was also recorded in the smartphone penetration in the O2 network, which reached 27% in the fourth quarter of 2012. Smartphones made up as much as 72% of newly sold phones, with interest in the mobile internet growing as well. The company responded to the demand for internet in handset by introducing its Smart Tariffs [Chytre tarify] in June. The Smart Tariffs integrate voice calls, internet access and free SMS messaging within the O2 network in a single package. Thanks to this offer, today 58% of customers that activate a new tariff select one with mobile internet access.

Improvements in other indicators have also been recorded: the number of prepaid customers increased in the fourth quarter by 7,300 to 1.819 million. Churn stood at 1.77% for the year 2012, 0.1 percentage points below the 2011 figure. Traffic on the O2 mobile network grew in 2012 by 7.1%, reaching a total of 9.59 billion call minutes.

The fixed network business also recorded good results with the number of xDSL internet access users increasing by 5% to 912,000. As many as 32% of these users already use VDSL broadband technology. In September 2012, the connection speed for the residential internet access service O2 Home Internet [O2 Internet na doma] increased to up to 40 Mbps, while the tariff prices remained unchanged. The number of O2 TV users reached 141,000 at the end of the fourth quarter of 2012, marking a 4.3% increase year-on-year.


We launch innovative products and services Other projects launched by the company have been also successful. Loyalty programme Extra vyhody (Priority Moments), which is available to all customers, helped O2 customers to save more than CZK 170 million when purchasing fuel, clothing, sports equipment or cinema tickets. Additionally, the company introduced the start-up incubator Wayra to the Czech Republic. By supporting innovation in business, the company will contribute to economic growth in Europe, creating job opportunities and assisting in transforming the telecommunications industry.

In June 2012, Telefonica Czech Republic launched the country' s first commercial LTE network, in Jesenice u Prahy. Another venue provided with LTE signal reception was the O2 Experience Centre outlet in Prague-Chodov. Moreover, in August 2012 Telefonica Czech Republic became the first mobile operator on the Czech market to open its infrastructure to a mobile virtual network operator. Virtual operator BleskMobil offers its customers prepaid SIM cards with low call and SMS rates.

Financial overview Total business revenues decreased in 2012 by 3.5% to CZK 50.035 billion due to pressure of competition on the telecommunications market coupled with regulatory measures. Mobile non-SMS data revenues grew by 7.4 % in 2012. Business revenues for Q4 2012 were CZK 12.783 billion. OIBDA (Operating Income before Depreciation and Amortisation) was CZK 5.091 billion in 4Q 2012, the highest quarterly figure recorded in 2012. Full-year 2012 OIBDA reached CZK 19.781 billion.

The company plans to invest up to CZK 6 billion in 2013, mainly in developing new fourth-generation LTE technologies and networks.

2012 shareholder remuneration proposal Board of Directors approved a proposal to AGM of distribute total amount of CZK 9,663 million, representing CZK 30 cash per share, composed of CZK 20 ordinary dividend and CZK 10 share premium reduction Share buy-back realisation Board of Directors adopted a resolution to commence additional tranche of the share buy-back program up to 2% of shares.

Key operational and financial highlights Operational Highlights 31. 12. 2011 31. 12. 2012 Note Year-on-year change Number of mobile customers 4,942 5,083 thousands + 2.9 % of which contract customers 3,049 3,192 thousands + 4.7 % Number of xDSL customers 872 915 thousands + 5.0 % Number of fixed lines 1,582 1,500 thousands - 5.2 % Financial Highlights 31. 12. 2011 31. 12. 2012 Note Year-on-year change Consolidated business revenues 52,388 50,035 CZK mn - 3.5 % Mobile non-SMS data revenues 2,499 2,683 CZK mn +7.4 % OIBDA 21,790 19,781 CZK mn About Telefonica Czech Republic Telefonica Czech Republic is a major integrated operator in the Czech Republic. It is now operating almost eight million lines, both fixed and mobile, making it one of the world's leading providers of fully converged services. The organization offers the most comprehensive portfolio of voice and data services in this country. It is paying special attention to the exploitation of the growth potential, particularly in the data and Internet sector. Telefonica Czech Republic operates the largest fixed and mobile network including a 3rd generation network, CDMA (for data), and UMTS, enabling voice, data and video transmission. Telefonica Czech Republic launched a LTE (Long Term Evolution) 4rd generation mobile communication network as the first operator in the Czech Republic. The new network offers the fastest available mobile Internet nowadays. Telefonica Czech Republic is also a notable provider of ICT services.

Telefonica Czech Republic has been confirmed as a member of the CEERIUS Sustainability Index in the season 2013. CEERIUS (CEE Responsible Investment Universe) is the sustainability index of Vienna Stock Exchange for the Central European region, composed of the leading companies in reference to corporate responsibility quality.

About Telefonica Telefonica is one of the world's largest telecommunications operators by market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 25 countries and has a global customer base of 312 million. Telefonica's growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America. Telefonica is a 100% private sector company with its shares listed in Madrid and other stock exchanges and more than 1.5 million individual shareholders.

Contacts Ctibor Jappel Press Department Telefonica Czech Republic, a.s.

ctibor.jappel@telefonica.com tel: +420 606 02 02 02 [Editorial queries for this story should be sent to newswire@enpublishing.co.uk] ((Comments on this story may be sent to info@enpublishing.co.uk)) (c) 2013 Electronic News Publishing -

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