CEE telecommunication companies

Telefonica O2 posted better than expected results. Government contract contributed with many new customers in Slovakian branch. Forward looking EPS is higher due to smaller investment amounts in Slovakia and taxes depreciation. To compare with other CEE telecommunication companies (PE 14.7) Telefonica is with fair value of PE 20 fuelled mainly by dividend policy. PE valuation for 2009 is expected to be on average 12 and for Telefonica 16.6. Analysts are expecting that this sector will be struggling by loosing fix line customers.