Sonaecom, the company behind a takeover bid for Portugal Telecom, has reported a drop in sales and net profits for 2005. The firm, which has offered EUR11.1 billion to acquire Portugal’s largest telco, said revenues fell from EUR880.2 million in 2004 to EUR843.5 million last year, due to a cut in mobile call charges which was ordered twelve months ago by telecoms regulator Anacom. Net profit fell 88% to EUR2.2 million. There was some good news: the firm’s mobile subsidiary Optimus saw an 11% increase in subscribers in 2005, taking its total to 2,353,000 by the end of December. Despite the poor results Sonaecom says it is still confident that it can succeed with its hostile bid for its much larger rival. Portugal Telecom’s board has rejected Sonaecom’s offer of EUR9.5 per share, saying it undervalues the company.