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Feb. 17 (Bloomberg) -- Telefonica Czech Republic AS jumped the most in more than three years after the phone company’s fourth-quarter net income exceeded analysts’ estimates.
The unit of Spain’s Telefonica SA rose 7.2 percent to 392.2 koruna at the end of trading in Prague, the biggest jump since October 2008. Turnover was 1.94 million shares, or more than six-times the daily average over the past three months. The stock was the best performer in the PX equity index today.
Profit in October to December rose to 2.87 billion koruna ($151 million) from 1.91 billion koruna a year earlier, helped by a one-time tax income, the Prague-based company said today. The median estimate of 11 analysts surveyed by Bloomberg was for 2.2 billion koruna. The company proposed a 40 koruna dividend, of which 13 koruna will come from a share-capital reduction.
“Net income significantly exceeded estimates,” Josef Nemy, an analyst at Prague-based Komercni Banka AS, wrote in a report to clients today. The dividend plan “is very good news” and “Telefonica clearly demonstrated its willingness to keep the dividend at 40 koruna even in following years,” he said.
--Editors: Ash Kumar, Alex Nicholson
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