PRAGUE, May 10 (Reuters) - Czech telecoms group O2 Czech Republic on Friday reported a 7 percent drop in first-quarter net profit, less than expected, as higher investments in 2018 pushed up depreciation and amortisation costs.
Net profit reach 1.24 billion crowns ($54.09 million) in the quarter, above the average estimate of 1.17 billion crowns in a Reuters poll of analysts.
Revenue grew 0.5 percent to 9.26 billion crowns in the quarter, driven by mobile data income growth, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11.5 percent to 2.91 billion crowns, above a poll estimate of 2.83 billion crowns.
“Our investments in the last year, of which a substantial part was directed to our network, led to an increase in depreciation, hence a year-on-year decline in net income,” Chief Financial Officer Tomas Kouril said.
“The year-on-year EBITDA growth confirms that our decision to invest into growth areas has been strategically correct.”
$1 = 22.9230 Czech crowns Reporting by Jason Hovet