Net profits fall for Portugal Telecom

5 Mar 2004

Portugal Telecom has announced its financial results for the full year 2003, with net profits falling by 38.6% in twelve months to EUR240 million. Operating revenues for the year, however, increased by 13.08% to EUR5.78 million, while EBITDA rose 7.1% to EUR573 million and debt fell by EUR821 million, to EUR3.22 million. The operator attributed the fall in profit to a decrease in ARPU at both its wireline and wireless operations. Monthly ARPU for the domestic wireline business dropped by 3% to EUR34.1 year-on-year, while at its domestic mobile unit TMN it fell EUR1.9 to EUR25.2. Even its Brazilian mobile venture, Vivo, saw ARPU declining by 5.4% in 2003 to BRL38.6.