PT Q1 profit down 52% on Brazil forex impact

23 May 2013

Portugal Telecom (PT) has reported operating revenues of EUR1.552 billion (USD2.003 billion) for the three months ended 31 March 2013, a decrease of 9.5% from EUR1.715 billion in the year-ago quarter. Revenue from the company’s domestic operations accounted for EUR634.4 million, down 6.8% year-on-year, reflecting Portugal’s challenging economic conditions and pricing pressure, as well as lower interconnection revenues among other factors. Brazilian telco Oi generated turnover of EUR723.9 million in Q1 2013, a decrease of 8.2% from EUR788.4 million in the first three months of 2012, primarily due to the impact of the depreciation of the Brazilian real against the euro, worth around EUR100 million. Other international assets saw their operating revenues grow 3% year-on-year to EUR128.5 million. PT said that consolidated EBITDA fell 7.9% year-on-year to EUR526.3 million, while net income dropped 51.7% from EUR55.4 million in the first quarter of 2012 to EUR26.7 million a year later, mainly due to lower income from operations. CAPEX reached EUR286.5 million in 1Q13, up 10.7% from EUR258.9 million in the year-ago quarter.

In its domestic market, PT reported a total of 7.647 million mobile customers at the end of March 2013 (an increase of 2.5% from 7.457 million a year earlier), 2.592 million PSTN/ISDN accesses (down 1.4%), 1.251 million broadband subscribers (up 9.7%) and 1.248 million pay-TV customers (up 12.3%). Brazilian personal mobile customers increased 5.6% from 44.106 million at the end of March 2012 to 46.569 million twelve months later and enterprise mobile clients climbed 23.5% year-on-year to 2.946 million. Residential fixed broadband lines in Brazil grew 13.8% year-on-year to 5.251 million at 31 March 2013, while residential fixed lines slipped 3.6% to 12.383 million.

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