* Q4 OIBDA 6.61 bln crowns vs forecast 6.48 bln
* Meets bottom side of full-year OIBDA guidance
* Revenue in quarter down 9.1 pct
* Cuts dividend to CZK 40, sees 5-9 pct 2010 OIBDA drop
(Adds details, quote, shares)
PRAGUE, Feb 25 (Reuters) - Core profit at telecoms group
Telefonica O2 Czech Republic <> slipped 2.4 percent to
6.61 billion crowns ($343.9 mln) in the fourth quarter, beating
estimates as margins rose, and the company narrowly met its
full-year guidance.
But revenues dropped as both mobile and fixed line customers
cut back and regulators slashed interconnection fees. The
company cut its dividend and predicted a profit drop this year,
forecasting tough business environment.
Analysts in a Reuters poll had estimated on average
operating profit before interest, tax, depreciation and
amortisation (OIBDA) of 6.48 billion crowns.
"The company expects a challenging environment to prevail at
least in the first half of 2010 due to the limited visibility on
customers' behaviour given the uncertain macroeconomic
performance and political situation," the company said in a
statement.
The country's economic recovery stalled in the fourth
quarter. A parliamentary election is planned for May and the
main leftist party, which leads opinion polls, plans to raise
revenues by hiking income taxes and health and social insurance
levies.
OIBDA dropped 4.4 percent for the full-year 2009, but
adjusted for guidance, the drop was 3.9 percent.
The company, 69 percent owned by Spain's Telefonica
<TEF.MC>, had forecast OIBDA to remain flat or drop by up to 4
percent in 2009, excluding impairment charges, brand fees and
currency moves.
Telefonica forecast a 5 to 9 percent OIBDA drop in 2010 and
proposed a dividend of 40 crowns per share, below last year's 50
crowns.
Fourth quarter revenue fell 9.1 percent to 15.01 billion
crowns, below estimates for 15.19 billion in a Reuters poll. It
dropped 7.3 percent for the full-year. The group had dropped its
2009 revenue target of 0-3 percent drop halfway through the
year.
Net profit rose 5.6 percent in the final quarter to 2.77
billion crowns, above 2.7 billion in the poll.
Shares in Czech Telefonica closed 0.1 percent up at 452
crowns before the earnings release, better than a 1.1 percent
drop in Prague's PX index <>.
The shares have underperformed an overall rise in Prague in
the past year and trade at 12.6 times estimated earnings, above
a sector average of 10.9.
(Reporting by Jason Hovet and by Jan Lopatka; Editing by David
Cowell)
