PT Q1 revenues drop, but net income jumps 29.3%

27 May 2011

Portugal Telecom (PT), Portugal’s largest fixed line operator by subscribers, has reported revenues of EUR871 million (USD1.23 billion) for the three months ended 31 March 2011. This figure represents a 3.9% decrease from the EUR907 million generated during 1Q2010. EBITDA for the quarter slumped 5.2%, from EUR377 million to EUR357 million, while CAPEX dropped 25% to EUR122 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 the period increased from EUR100 million to EUR130 million, a rise of 29.3% year-on-year.

PT’s fixed line division saw its revenue decrease by 6.6%, to EUR456.2 million year-on-year, whilst the telco’s wireless unit TMN saw revenues slump 12.4%, to EUR303 million. In operational terms, PT now claims 2.68 million PSTN retail accesses, a drop from 2.73 million year-on-year. Nevertheless, the solid performance of PT’s ‘Meo’ double-play and triple-play offers has contributed decisively to offset net fixed line disconnections. Meanwhile, PT’s ADSL retail accesses increased from 901,000 to 1.019 million year-on-year, whilst its TV customer base saw the largest increase of all of its domestic interests, rising from 646,000 to 876,000. Domestic wireless unit TMN saw its subscriber base increase from 7.26 million to 7.41 million year-on-year, although TMN’s customer base actually decreased slightly quarter-on-quarter, by around 5,000 users.