Portugal Telecom Q2 net profit up 82.5%; Brazil interests offset domestic slump

5 Aug 2010

Portugal Telecom (PT), Portugal’s largest fixed line operator by subscribers, has reported a net income of USD164.2 million for the three months ended 30 June 2010. This figure represents an 82.5% increase from USD90.0 million for the same period one year earlier. Operating revenues for Q2 rose 17.1%, from USD1.62 billion to USD1.90 billion. The second quarter saw revenue generated by PT’s domestic interests wane by 0.9%, but this was more than offset by the considerable rise in revenues from Vivo, its former Brazilian interest, which increased by 37.5%. PT’s 50% stake in Vivo was sold to Telefonica for USD9.8 billion last month.

PT’s fixed line division saw its revenue increase by 2.0%, from USD473.3 million to USD482.8 million year-on-year, but its wireless unit TMN saw revenues decrease 6.4%, from USD367.1 million to USD343.6 million. In sharp contrast, Vivo reported a 35.6% revenue increase, from USD738.7 million to USD1.0 billion. In terms of subscriber figures, PT now claims 2.71 million PSTN retail accesses, a 2.4% drop from 2.77 million year-on-year. Its ADSL retail accesses increased 19.5%, from 781,000 to 933,000, whilst its TV customer base saw the largest increase of all of its domestic interests, rising 58.6%, from 443,000 to 702,000. TMN recorded a 4.3% increase in subscribers, from 6.97 million to 7.27 million, while in Brazil, Vivo increased its base from 46.8 million to 55.97 million, a rise of 19.6%.

Portugal, PT Portugal (MEO)