PT posts 5.4% drop in 2013 revenue

19 Feb 2014

Portugal Telecom (PT) has announced its consolidated financial results for the twelve months ended 31 December 2013, reporting a 5.4% decline in operating revenues to EUR2.911 billion (USD3.99 billion) from EUR3.079 billion in 2012, with fourth-quarter turnover falling 2.9% year-on-year to EUR735.7 million. The decline was attributed to reduced revenue from the telco’s domestic operations and a lower contribution from other international operations, namely MTC in Namibia (due to negative currency effect) and Timor Telecom. Turnover from the Portuguese business totalled EUR639.4 million in the three months ended 31 December 2013, a decrease of 3.2% year-on-year, and for the full year domestic sales were down 5.2% to EUR2.559 billion, impacted by pricing and competitive pressure and by the challenging macroeconomic environment. Other revenues, including intra-group eliminations, decreased by 7.1% from EUR378.5 million in 2012 to EUR351.6 million a year later, but were down just 1.0% year-on-year to EUR96.4 million for 4Q13. PT said that consolidated EBITDA fell 5.8% in 4Q13 and by 9.9% in the twelve-month period to EUR281.3 million and EUR1.162 billion, respectively. The decrease was attributed to lower EBITDA from Portugal, primarily due to lower revenues, and a 20.1% decrease in EBITDA from other businesses, reflecting the depreciation of the Namibian dollar and other negative currency effects. Net income was EUR25.9 million in the fourth quarter of 2013, compared to EUR40.1 million twelve months earlier, but in full year 2013 totalled EUR331.0 million (up 46.6% year-on-year), due to the gain recorded in connection with the sale of Companhia de Telecomunicacoes de Macau (CTM), as well as lower depreciation and amortisation expenses in Portugal, and higher non-recurring gains.

PT reported a total of 7.896 million domestic mobile customers at the end of December 2013 (an increase of 3.9% from 7.598 million a year earlier), 2.549 million PSTN/ISDN accesses (down 2.1%), 1.294 million broadband subscribers (up 5.6%) and 1.315 million pay-TV customers (up 7.5% year-on-year). Brazilian personal mobile customers increased 3.1% from 46.305 million at the end of 2012 to 47.727 million twelve months later, while corporate mobile clients declined 15.0% year-on-year to 2.511 million. Oi’s residential fixed broadband lines grew 3.1% year-on-year to 5.258 million as of Q4 2013, while residential fixed lines dropped 5.8% to 11.750 million. PT is in the process of merging with Oi in order to strengthen the Brazilian firm and simplify its ownership structure, while also helping to shore up PT’s operations in its domestic market. The combined entity will have more than 100 million subscribers in Europe and Latin America, with annual revenues of around USD19 billion.