Portugal Telecom has announced that net income for 2004 reached EUR500 million, up from EUR240 million for the previous year. The sharp increase is in part due to the impact of a one-off accounting adjustment on 2003 profits. Operating revenue grew 4.2%, driven largely by PT’s mobile operations in both its domestic market (up 7%) and Brazil (up 10%), which when taken together account for 49% of the company’s total sales. Capital expenditure rose 20% year-on-year as a result of increased spending on broadband, network expansion and migration in Brazil.
At the end of 2004 the telco had 4.368 million fixed lines in service in Portugal, up 3.4% from twelve months previously, with ADSL retail lines growing from 161,000 to 380,000. The subscriber base of domestic mobile operator TMN broke the five million barrier, while its Brazilian joint venture with Telefónica, Brasilcel (Vivo), enjoyed customer growth of over 28%, ending the year with 26.543 million subscribers.