PT reports 36.3% drop in net profit

17 Nov 2009

Portugal Telecom (PT) has posted net profit of EUR115.9 million (USD173.39 million) for the three months ended 30 September 2009, down 36.3% from EUR181.7 million in the same period a year earlier. PT attributed the decline to a number of factors, such as lower mobile call charges and rising financial and depreciation costs after investment in new networks and equipment. Third quarter revenues slipped by 2.3% year-on-year, falling from EUR1.78 billion in Q308, to EUR1.74 billion a year later. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined to EUR656.8 million for the third quarter of 2009, a drop of 2.7% year-on-year, while depreciation and amortisation climbed to EUR349.7 million, up 4.6% from EUR334.2 million a year earlier.

PT Group reported a consolidated customer base of 68.05 million at the end of September 2009, up from 58.95 million a year earlier. In its domestic operations the company claimed 4.08 million retail wireline customers, up from 3.76 million a year earlier, as net additions to its broadband and pay-TV segments outweighed the net total of customers disconnecting from the PSTN. As of 30 September 2009 the company had 812,000 ADSL customers (up 133,000 year-on-year), 505,000 pay-TV subscribers (up 294,000) and 2.76 million fixed line telephony accesses (down 110,000). Meanwhile the company’s mobile unit Telecomunicacoes Moveis Nacionais (TMN) added 352,000 net new subscribers to its customer base in the twelve months ended 30 September 2009, ending the period with a total of 7.08 million subscribers.