Portugal Telecom (PT), the country’s largest fixed line operator by subscribers, has reported operating revenues of EUR4.934 billion (USD6.406 billion) for the nine months ended 30 September 2012, an increase of 12.9% compared to the corresponding period one year earlier. Of this figure, PT’s domestic activities accounted for EUR2.040 billion, an amount which was eclipsed by the sales generated by Brazilian telco Oi SA, which brought in EUR2.295 billion. EBITDA for the nine-month period under review grew 4.5% year-on-year to EUR1.729 billion, while CAPEX increased 26.5% to EUR890 million.
However, PT’s net income for the first nine months of 2012 slumped 37.3% to EUR189 million. PT blamed 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.