PT 1H12 revenues up 25.3%; net income slumps 40.9%

3 Aug 2012

Portugal Telecom (PT), Portugal’s largest fixed line operator by subscribers, has reported operating revenues of EUR3.345 billion (USD4.090 billion) for the six months ended 30 June 2012, an increase of 25.3% compared to the EUR2.669 billion generated during 1H11. Of this figure PT’s domestic activities accounted for EUR1.359 billion, an amount which was eclipsed by the sales generated by Brazilian telco Oi SA, which brought in EUR1.542 billion. EBITDA for the six-month period under review year grew 14.1%, from EUR1.000 billion to EUR1.141 billion, while CAPEX increased 24.9% to from EUR418 million to EUR522 million. PT says that CAPEX was primarily directed towards the rollout of its burgeoning fibre-to-the-home (FTTH) network, as well as investments in Long Term Evolution (LTE) deployment; since April 2012 PT’s Telecomunicacoes Moveis Nacionais (TMN) mobile unit has claimed 80% coverage with its LTE network.

Net income for the first six months of 2012 slumped 40.9% to EUR125 million. PT blames the drop on three main factors, namely: the one-time gain of EUR38 million in 1Q11, related to the disposal of its stake in Brazilian internet service provider (ISP) Universo Online (UOL); an increase in interest expenses primarily related to the increase in Oi SA’s average net debt; and the EUR51 million interest gain recorded in 1Q11 on the cash deposits in Brazilian reais that were used to fund the strategic investments in a 25.3% stake in Oi SA and a 14.1% stake in Brazilian contact centre Contax on 28 March 2011.

Oi SA was formed through the restructuring of Telemar Participacoes’ former operating divisions Brasil Telecom, Tele Norte Leste Participacoes, Coari Participacoes and Telemar Norte Leste.

Portugal, Oi, Pharol (formerly Portugal Telecom SGPS [PT SGPS])