Portugal Telecom’s (PT’s) first quarter net profit fell 40% as revenue stagnated in its home market and the company earmarked more money to expand networks and pay television. PT said net profit fell to EUR100.3 million (USD129.4 million) from EUR166.4 million a year earlier. Revenue rose 11% to EUR1.77 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 5.1% to EUR633.4 million.
Portugal Telecom invested heavily in the quarter in beefing up its pay-TV business in Portugal and third-generation mobile network in Portugal and Brazil, two of the company’s main strategic operations. The company said capital expenditure in the quarter rose 2% to EUR229 million compared with a year ago, mostly due to costs from expanding its fibre-optic networks.