Disappointing results at PT

2 Nov 2005

Portugal Telecom has reported a 62% fall in third quarter net profit to EUR59.6 million, with the fall blamed on costs related to staff cuts and increasing competition in its domestic mobile market. Sales for the period were up 7.5% year-on-year to EUR1.64 billion thanks to positive performances at Brazilian cellular unit Vivo and in the Portuguese broadband internet market. At the end of September PT had 4.47 million wireline customers in Portugal, including 547,000 retail ADSL subscribers. Its domestic cellular division, TMN, had 5.21 million subscribers, up 5.5% in twelve months, although monthly ARPU levels have fallen from EUR25.5 to EUR23.4 over the same period. In Brazil, Vivo claimed 28.4 million customers at the end of September, up from 24.6 million a year ago.