PT FY12 net profit slides 32%

28 Feb 2013

Portugal Telecom (PT) has announced it generated operating revenues of EUR6.6 billion (USD8.6 billion) in the twelve months ended 31 December 2012, an increase of 7.4% from EUR6.1 billion in 2011. Revenue from the company’s domestic operations accounted for EUR2.7 billion, down 6.6% year-on-year, reflecting Portugal’s challenging and deteriorating economic and competitive environment, and lower interconnection revenues, while Brazilian telco Oi generated turnover of EUR3.0 billion in 2012, an increase of 26.1% from EUR2.4 billion the previous year. EBITDA climbed 3.7% year-on-year to EUR2.3 billion. In 2012, fully and proportionally consolidated international assets represented 58.4% and 50.4% of PT’s consolidated revenues and EBITDA, respectively. PT said that net income fell 32.1% from EUR339.1 million in 2011 to EUR230.3 million a year later, which it attributed to 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’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 and a 14.1% stake in Brazilian contact centre Contax on 28 March 2011. CAPEX reached EUR1.317 billion in 2012, of which the group’s domestic operations accounted for EUR555 million (down 14.1% y-o-y).

In its domestic market, PT reported a total of 7.598 million mobile customers at the end of 2012 (an increase of 2.1% from 7.444 million a year earlier), 2.604 million PSTN/ISDN accesses (down 1.6%), 1.225 million broadband subscribers (up 10.8%) and 1.223 million pay-TV customers (up 17.4%). Brazilian personal mobile customers increased 7% from 43.264 million at the end of 2011 to 46.305 million twelve months later and enterprise mobile clients climbed 31.8% to 2.995 million. Residential fixed broadband lines in Brazil grew 15.6% year-on-year to 5.102 million at 31 December 2012, while residential fixed lines slipped 4.4% to 12.478 million.



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