PT swings to Q1 net loss

15 May 2014

Portugal Telecom (PT) has announced its consolidated financial results for the first quarter of 2014, reporting a 3.9% fall in operating revenues to EUR690.0 million (USD946.1 million) from EUR717.6 million in the year-ago period. The decline was attributed to reduced revenue from the firm’s domestic business and a lower contribution from international operations, namely MTC in Namibia (due to negative currency effect) and Timor Telecom. Turnover from the Portuguese business totalled EUR612.6 million in the three months ended 31 March 2014, a decrease of 3.4% year-on-year, impacted by pricing and competitive dynamics in the residential segment, and by the difficult macroeconomic environment. Other revenues, including intra-group eliminations, decreased by 7.0% from EUR83.2 million in 1Q13 to EUR77.4 million a year later, reflecting negative currency effects (EUR11 million). PT said that consolidated EBITDA fell 3.7% year-on-year to EUR279.3 million, due to lower EBITDA from Portugal, primarily due to lower revenues, and a 25.3% decrease in EBITDA from other businesses, reflecting the depreciation of the Namibian dollar and other negative currency effects. The company reported a net loss of EUR14.7 million for the first quarter of 2014, compared to a net profit of EUR26.7 million twelve months earlier, primarily due to lower EBITDA from Portugal, lower non-recurring gains, and a reduction in PT’s share in the earnings of equity assets and joint ventures.

PT reported a total of 7.854 million domestic mobile customers at the end of March 2014 (an increase of 2.7% from 7.647 million a year earlier), 2.534 million PSTN/ISDN accesses (down 2.2%), 1.316 million broadband subscribers (up 5.1%) and 1.334 million pay-TV customers (up 6.9% year-on-year). Total Brazilian subscribers totalled 74.60 million at end-March 2014, including 48.145 million personal mobile customers (up 3.4% year-on-year), while other international subscribers reached 14.05 million from 13.60 million a year earlier.