PT looks to foreign investments to drive growth

19 Nov 2009

According to a report by the Financial Times, Portugal Telecom (PT) plans to expand its group customer base by over 50% through its investments in Brazil and Africa, seeking to exploit the high growth potential of the markets to lift the contribution of overseas operations from half to two-thirds of total operating revenue. PT’s Brazilian subsidiary Vivo was among the biggest contributors to group net profit of EUR371.9 million (USD552 million) for the first nine months of 2009, and the company emphasised the importance of the cellco to its future plans. PT CEO, Zeinal Bava, said: ‘Brazil is absolutely core and strategic to our business… Mobile penetration in Brazil, at around 80% to 85%, remains low compared with other big Latin American countries, where it is 100% and above.’ Bava added that PT is also interested in investing in mobile operators in sub-Saharan Africa, aiming to add to its operations in Angola, Namibia and Cape Verde.