Portugal Telecom (PT), Portugal’s largest fixed line operator by subscribers, has reported revenues of EUR1.716 billion (USD2.183 billion) for the three months ended 31 March 2012. This figure represents an increase of 97.0% compared to the EUR871 million generated during the first quarter of 2011. EBITDA for 1Q12 grew 59.9% year-on-year, from EUR357 million to EUR572 million, while CAPEX increased 111.9% to EUR259 million.
The strong revenue growth was mainly due to the proportional consolidation of new subsidiaries Brazilian telco Telemar Norte Leste (Oi, 25.3%) and Brazilian contact centre Contax (14.1%), which were acquired simultaneously in March 2011. However, despite the huge increase in revenues, the duo’s consolidation has also lead to substantially higher costs, causing PT to witness a 56.5% y-o-y drop in its net income for 1Q12, which plummeted from EUR130 million to EUR56 million.