PT revenues display marginal increase; net profit rises following Vivo sale

24 Feb 2011

Portugal Telecom (PT), Portugal’s largest fixed line operator by subscribers, has reported revenues of EUR3.74 billion (USD5.13 billion) for the twelve months ended 31 December 2010. This figure represents a 0.2% increase from the EUR3.73 billion generated during 2009. EBITDA for 2010 dropped 4.2%, from EUR1.56 billion to EUR1.49 billion, while CAPEX dropped 5.9% to EUR798 million. PT says that CAPEX was primarily directed towards the rollout of its burgeoning FTTH network and TV service, as well as investments in 3G and 3.5G. Net income for 2010 rocketed from EUR685 million to EUR5.67 billion as a result of the sale of Vivo in Q3; the Brazilian interest was sold to Telefonica for USD9.8 billion in July 2010. The company has now adjusted all historical 2009 figures to exclude its former Brazilian interest Vivo, dismissing it as a ‘discontinued operation’.

PT’s fixed line division saw its revenue decrease by 1%, to EUR1.93 billion year-on-year, whilst the telco’s wireless unit TMN saw revenues slump 8.6%, to EUR1.38 billion. In operational terms, PT now claims 2.69 million PSTN retail accesses, a 1.9% drop from 2.75 million year-on-year. Nevertheless, the solid performance of PT’s ‘Meo’ double-play and triple-play offers contributed decisively to offset net fixed line disconnections. This trend, PT says, is particularly visible in the residential segment, which saw around 10,000 net fixed line additions during 2010. Meanwhile, PT’s ADSL retail accesses increased 16.1%, from 862,000 to 1.01 million year-on-year, whilst its TV customer base saw the largest increase of all of its domestic interests, rising 42.9%, from 581,000 to 830,000. Domestic wireless unit TMN recorded a 2.3% increase in subscribers, from 7.25 million to 7.42 million.