Net profit up 19.1% for PT

14 May 2009

Portugal Telecom (PT) has announced a 19.1% year-on-year rise in net profit in the first quarter of 2009, up to EUR166.4 million (USD227 million) from EUR139.8 million in the same period a year earlier. The company reported group revenues of EUR1.6 billion for the three months ended 31 March, up 2.1%. Operating expenses also increased marginally, up 3.7% to EUR1 billion. The company said that the growth in profit was driven by success in its domestic broadband business and its Brazilian mobile operator Vivo. PT reported a 17.3% growth in its retail broadband operations, ending 1Q 2009 with 752,000 subscribers to its ADSL network. Telecomunicacoes Moveis Nacionais, PT’s wholly owned mobile operator, saw its customer base grow by 9.3% year-on-year, up to 6.96 million. Vivo added 696,000 net new subscribers in the quarter, with 45.6 million customers at the end of March.

PT also revealed its plans to extend its next-generation network, aiming to reach one million households across Portugal with the fibre-optic network by the end of 2009. Investor relations director Nuno Vieira said, ‘This network will allow PT to provide high-speed and high quality services, and meet consumers’ needs and requirements, thus positioning PT to achieve its goals of leadership in all areas of activity in the domestic market and profitable future growth.’