O2 ČR will continue to use the name

The telecom operator has extended its agreement with Telefónica

Telecom operator O2 will continue to use the name until 2022. Originally the operator was to stop using the name by 2019. The announcement was made as part of 02's half-year report, which also showed that profit increased by 3.6 percent.

“We manage to extend period we can use O2 brand by another three years until January 2022. We will continue to be a member of the Telefónica Group's partnership program. In connection with this extension, we have to pay a prepayment of about Kč 900 million by the end of this year,” Tomáš Kouřil, company's chief financial officer and vice-chairman of the board of directors, said in a press release. “Financial services were the fastest growing area in the first half of 2017. Revenue in this area reached close to Kč 80 million, confirming our successful proposition,” he added.

In explaining the extension of the use of the name, the press release stated that O2 Czech Republic extended the O2 brand license period for an already agreed fee by another three years on top of current period ending Jan. 27, 2019, that is newly till Jan. 27, 2022.

Moreover, it extended the partnership agreement with Telefónica till the same date. The company will be able to extend the O2 brand license by another five years, that is until Jan. 27, 2027, while the total price for the O2 brand will be reduced. A prepayment of about Kč 900 million, which the company has to make by 2017 year end, is the condition for O2 brand license and partnership agreement extension.

Net profit reached Kč 2.632 billion, an increase of 3.6 percent. Operating revenue was Kč 18.487 billion, up 1.4 percent. Mobile revenue increased 3.5 percent, fixed revenue was up 5.3 percent and revenue from Slovakia increased 8.0 percent.

Total costs were Kč 13.420 billion, up 1.6 percent, while operating costs were Kč 3.984 billion. EBITDA was at Kč 5.093 billion, up 0.8 percent. The EBITDA margin was 27.5 percent.

The company promised to continue to improve its technology. “I am pleased that our broadband home internet offer, which is available to 99 percent households in the country, is well accepted among our customers,” said Tomáš Budník, chief executive officer and the chairman of the board of directors of O2 Czech Republic.

“In the second half, we will intensify investments into our own network expansion In Slovakia aiming to reduce dependency on national roaming and consequently improve our future profitability. In addition we will continue in 4G network rollout in order to satisfy increasing customers' demand for mobile data,” he said.

The company claimed success with its strategy to reach smaller customer groups. Since May 2017, O2 has been selling O2 Spolu tariff, which offers families, groups of friends and small entrepreneurs a flexible combination of up to four SIM cards with unlimited calling and SMS, mobile data package (3 to 10 GB per SIM card) and digital TV in one package. Within a few weeks from the launch this tariff has become very popular among the customers, according to O2.

As of June 30, 2017, total number of mobile customers reached 4.903 million, up by 0.1 percent year-on-year. The number of contract customers increased by 2.1 percent year-on-year reaching 3.366 million. They represented already 68.7 percent of the mobile customer base, up by 1.3 percentage point. Number of prepaid customers reached 1.537 million, O2 stated in it press release.

Mobile data traffic increased more than by 80 percent. The number of internet in handset service went up by one third year-on-year to 2.222 million. Already close to 60 percent of handsets in O2 network are smartphones and 39 percent of them supports LTE technology. Number of customers with LTE smartphone and with USIM card, which supports the new technology, reached close to 990,000 at the end of June.

The total number of fixed voice lines reached 654,000 thousand at the end of June 2017.

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