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EUROTEL: SUCCESSFUL RESULTS FOR THE
FIRST HALF OF 1998
EuroTel Praha, the largest GSM and NMT mobile phone operator in the Czech Republic, has
published successful management and financial results for the first half of 1998.
In July of 1998, the number of active customers who own EuroTel GSM Global and
EuroTel Classic mobile phones exceeded 450,000. Compared with the end of 1997, when
EuroTel registered 354,000 mobile phone owners, this represented growth of nearly 27%.
In the first six months of 1998, operational revenues reached more than 6.25
billion CZK, a year-on-year increase of 1.6 billion CZK, or 35%. This growth in revenue,
which was achieved in an environment of decreasing service and phone prices, underscores
the outstanding position of EuroTel in the fast growing Czech market.
"EuroTel is also very well prepared for the second half of 1998," stresses
Michal Heøman, the Chief Financial Officer. "We anticipate that total 1998
revenues will equal our plans and allow us to reinvest in our business."
"The successful result was based primarily on our excellent customer base,
good operational results, a high quality financial policy, and the thorough cost controls
that we implement," stated Michal Heøman. Underpinning EuroTel´s financial
performance is a 400 million USD (720 million DEM) loan, which EuroTel secured at
favourable rates in 1997. "This loan, the largest of its kind in 1997 financed in
the Czech Republic, coupled with favourable exchange rates has contributed significantly
to our results,” said Michal Heøman.
This year, EuroTel plans to invest more than 6 billion CZK in the further
development of its GSM and NMT networks, including service infrastructure, in the Czech
Republic. EuroTel will draw on its own resources as well as on the loan to cover its
further operational and business development cost.
“We are continuing to invest heavily in network infrastructure for a benefit
of our customers and we are committed to provide the highest quality services in the Czech
Republic,” added Jamie Macdonald, the acting managing director of EuroTel Praha.
EuroTel Praha Ltd is a joint venture between SPT TELECOM Inc. (51%) and Atlantic
West B.V. (49%). Atlantic West B.V. is jointly owned by Bell Atlantic (NYSE:BELL) and
MediaOne International, which is a part of the MediaOne Group (NYSE:UMG).
Prague, 20 July 1998
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For further information, please contact:
EuroTel Praha, Ltd.
Iva Taounová
Tel.: 02/6701 1193, Fax: 02/6701 1195
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