PT Q2 revenues slump 6.5%; wireless revenues plummet 10.7%

26 Jul 2011

Portugal Telecom (PT), Portugal’s largest fixed line operator by subscribers, has reported consolidated operating revenues of EUR872.6 million (USD1.25 billion) for the three months ended 30 June 2011. This figure represents a 6.5% decrease from the EUR934 million generated during 2Q2010. EBITDA for the quarter slumped 5.3%, from EUR370.3 million to EUR350.7 million, while CAPEX increased 15.3% to EUR172.0 million. PT says that CAPEX was primarily directed towards the rollout of its burgeoning fibre-to-the-home (FTTH) network and TV service, as well as upgrades to prepare base stations for the shift to Long Term Evolution (LTE). PT’s fixed line division saw its revenue decrease by 4.5%, to EUR461.2 million year-on-year, whilst the telco’s wireless unit TMN saw revenues slump 10.7%, to EUR306.7 million. PT blamed the decrease in mobile revenues on a combination of economic factors – including an increase in VAT, the increased popularity of ‘tribal’ calling plans (specifically plans without a monthly fee and only a mandatory top-up obligation) and lower interconnection revenues. Meanwhile, PT reports that its international assets – which include Unitel in Angola, CVT in Cape Verde, MTC in Namibia, CTM in Macao and Timor Telecom in East Telecom – increased their proportional revenues by 14.8% on a pro forma basis for 1H11, to EUR327 million; international EBITDA decreased by 4.0% year-on-year to EUR103 million.

In operational terms, PT now claims 2.67 million PSTN retail accesses, a 1.4% drop from 2.71 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 933,000 to 1.040 million year-on-year, whilst its TV customer base saw the largest increase of all of its domestic interests, rising 30.9% from 702,000 to 919,000. Domestic wireless unit TMN saw its subscriber base increase from 7.27 million to 7.33 million year-on-year. Quarter-on-quarter TMN witnessed net additions of 14,000 post-paid customers and net losses of 94,000 pre-paid customers.