D&A hits PT bottom line

6 Aug 2009

Portugal Telecom (PT) has posted a 20% reduction in consolidated net income for the second quarter of 2009, down from EUR112.1 million (USD161.5 million) in Q208 to EUR89.7 million a year later. Revenues shrank by 2.5% to EUR1.63 billion in the quarter, compared to EUR1.67 billion in the three months ended 30 June 2008. Operating costs for the period were down 4.7% to EUR1.03 billion while earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 1.6% year-on-year to EUR594.9 million. Net income was hit hardest by a 9.3% rise in depreciation and amortisation (D&A), up to EUR342.1 million, and a 19.4% jump in financial expenses, up to EUR35.9 million.