PT net profit down 55%

7 Aug 2008

Portugal Telecom (PT) has reported its second-quarter net profit fell 55.2%. The company said the figure would have been a more acceptable 13.8% excluding the effects of curtailment costs and higher capital expenditure. Net income in the three months to the end of June was EUR113.1 million (USD174.9 million), down from EUR252.5 million a year earlier. Revenue for the quarter increased 12% to EUR1.67 billion from EUR1.5 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA), was stable at EUR576 million. Operating costs rose 19.5% to EUR1.1 billion from EUR919 million year-on-year, while CAPEX rose 27.1% to EUR215.9 million compared to twelve months previously.

Revenue from domestic mobile operator TMN grew 7.4% to EUR391.7 million, but could not make-up for the decline in domestic wireline revenue which fell 3.6% to EUR476.1 million. The company’s Brazilian wireless unit Vivo performed well with revenue increasing 29.1% to EUR766.9 million in the quarter. Vivo is Brazil’s largest mobile company and is jointly owned by PT and Spainish operator Telefonica.

Portugal, PT Portugal (MEO)