Sales down at PT

9 Feb 2007

Portugal Telecom has seen a 4.7% fall in fourth-quarter revenues to EUR1.64 billion (USD2.13 billion) due to poor performances at both its wireline and wireless business units. The fixed line division reported a 6.5% drop in sales to EUR505 million following a decrease in traffic as well as growing competition, while mobile subsidiary TMN saw a 2.7% fall in sales to EUR387 million on the back of lower handset sales and reduced call termination rates. One positive note came from the cable division PT Multimedia, which saw a 12.4% year-on-year rise in fourth quarter revenues to EUR177 million thanks to an increase in pay-TV customers and improved usage rates.

The group’s fourth-quarter EBITDA grew 3.9% to EUR738 million, while falling financial expenses and a good performance at PT’s Brazilian mobile venture Vivo helped push net income up 15.8% to EUR340 million. PT had just over four million local telephone lines in service at the end of December, down from 4.36 million twelve months before, while ADSL subscriptions were up by 100,000 over the year to 685,000. TMN, meanwhile, added 211,000 net new subscribers in the final three months of 2006 to reach 5.7 million, with ARPU falling 4.7% to EUR17.2. PT is currently the target of a EUR11 billion takeover bid by rival Portuguese telco Sonaecom.

Portugal, Telecomunicacoes Moveis Nacionais (TMN)