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Telefonica Czech likely to change name to O2 Czech Republic - report [IntelliNews - Weekly Reports]
[April 23, 2014]

Telefonica Czech likely to change name to O2 Czech Republic - report [IntelliNews - Weekly Reports]


(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Telefonica Czech Republic, the country's largest telecommunications company, will likely change its name to O2 Czech Republic, CTK news agency reported citing an unnamed source. The report confirms a publication published earlier by server Motejlek.com.



The name change follows the company's acquisition by Czech investment and financial group PPF. The shareholders will vote on the name change at an extraordinary meeting the date of which is yet to be announced. Telefonica Czech Republic uses the name O2 as a trademark under which it offers its services.

PPF, controlled by the Czech Republic's richest man Petr Kellner, agreed in November to buy a 65.9% stake in Telefonica Czech for EUR 2.467bn. The deal also includes Telefonica's Slovak operations. Telefonica will keep a 4.9% in the Czech unit.


Telefonica Czech posted a 16% annual decline in net profit to CZK 5.7bn (EUR 209mn) in 2013 as revenue kept on falling due to mobile termination rate cuts and competitive pressure. The company attracted 132,000 new customers in 2013 expanding its mobile client base to 5.102mn, up 2.6% y/y. The number of fixed-line clients fell by 7.4% y/y to 1.389mn last year when the company lost 111,000 users.

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