PT Q3 net profit plummets 66%

13 Nov 2013

Portugal Telecom (PT) has announced consolidated operating revenues of EUR1.454 billion (USD1.95 billion) for the third quarter of 2013, a decrease of 11.3% from EUR1.639 billion in the year-ago period, while nine-month turnover dropped 8.8% year-on-year to EUR4.546 billion. The decline was attributed to the impact of the depreciation of the Brazilian real against the euro (EUR328 million), revenue decline in the telco’s domestic operations and a lower contribution from other international operations. Turnover from the Portuguese business totalled EUR640.3 million in the three months ended 30 September 2013, a decrease of 6.1% year-on-year, and domestic sales were down 5.9% to EUR1.920 billion in 9M 2013, impacted by pricing and competitive pressure and by the challenging macroeconomic environment. Turnover at Brazilian telco Oi was EUR631.9 million in Q3 2013 (a decrease of 16.1% year-on-year) and EUR2.050 billion in the first nine months of the year (down 10.7%), primarily due to the impact of the depreciation of the real against the euro. Other international assets saw their operating revenues decline by 10.2% from EUR204.0 million in 3Q12 to EUR182.1 million a year later. PT said that consolidated EBITDA fell 15.4% in 3Q13 and by 12.4% in the nine-month period to EUR497.5 million and EUR1.514 billion, respectively. The decrease was mainly due to lower income from operations, the depreciation of the real and an increase in commercial costs at Oi. Net income was EUR21.0 million in the third quarter of 2013, compared to EUR62.6 million twelve months earlier, but in 9M13 totalled EUR305.0 million (up 64.3% year-on-year), due to the gain recorded in connection with the sale of Companhia de Telecomunicacoes de Macau (CTM) and higher non-recurring gains.

In Portugal, PT reported a total of 7.807 million mobile customers at the end of September 2013 (an increase of 5.7% from 7.386 million a year earlier), 2.564 million PSTN/ISDN accesses (down 1.7%), 1.280 million broadband subscribers (up 6.7%) and 1.294 million pay-TV customers (up 8.0%). Brazilian personal mobile customers increased 3.9% from 45.568 million at the end of September 2012 to 47.337 million twelve months later, while corporate mobile clients declined 4.7% year-on-year to 2.698 million. Oi’s residential fixed broadband lines grew 7.3% year-on-year to 5.336 million as of Q3 2013, while residential fixed lines dropped 4.1% to 12.091 million.