UPDATE 1-Czech CEZ Q3 net lower than expected, shares slide

(Adds operating profit, background, shares)

PRAGUE, Nov 15 (Reuters) - CEZ <CEZPsp.PR>, central Europe's largest utility group, posted a weaker-than-expected 51 percent rise in third-quarter net profit on Wednesday on the back of a sharp increase in electricity prices and foreign acquisitions.

The Czech-based company's net profit, excluding minorities, was 5.22 billion crowns ($238.5 million) for July-September, lagging the average forecast of 5.59 billion crowns in a Reuters poll of nine analysts.

Shares in CEZ shed 0.4 percent to 892.50 crowns after the earnings news on the Prague bourse, off an all-time high of 911 crowns posted on Monday.

"Growth is driven by the highest ever output, a rise in electricity sales, costs savings as part of CEZ group integration and foreign acquisitions, whose contribution has risen nearly threefold over a year ago," a CEZ statement said.

CEZ, the EU member's most profitable company, has been on the acquisition trail in central and eastern Europe, buying power generation plants and distribution assets in Poland, Bulgaria and Romania.

The utility has been awash with cash thanks to a jump in wholesale electricity prices on its domestic Czech market.

CEZ's operating profit, or earnings before interest and tax (EBITD), rose 16.5 percent year-on-year to 6.57 billion crowns in the third quarter, undershooting the average forecast of 8.32 billion crowns.

Revenue for the third quarter rose 32 percent from the year-earlier period to 36.53 billion crowns, above the average forecast of 34.63 billion crowns.

CEZ added it was raising its forecast for overall net profit, including minorities, in the full year of 2006 to 28.5 billion crowns from a previous 28 billion. It also increased guidance for operating profitability this year. ((Reporting by Jan Korselt, writing by Marek Petrus, editing by Will Waterman; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477)) ($1=21.89 Czech Crown)

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Keywords: UTILITIES CZECH CEZ