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Portugal : PORTUGAL TELECOM announces Q1 net loss of EUR 14.7 MILLION

May 16, 2014



Portugal Telecom has reported a first-quarter net loss of EUR 14.7 million, compared to a profit of EUR 26.7 million a year earlier.

The result was hurt by lower profits from its affiliates abroad, such as Unitel in Angola and the sale of CTM, as well as higher forex and financing costs related to its pending merger with Brazil's Oi.

Operating revenues has been redcued to 3.9 percent year-on-year to EUR 690.0 million, while operating costs dropped 4 percent to EUR 410.7 million. EBITDA declined 3.7 percent to EUR 279.3 million, and the EBITDA margin was up 0.1 percentage points to EUR 40.5 percent. Capex dropped 14.3 percent from a year earlier to EUR 102.6 million. Free cash flow was a negative EUR 73 million, and net debt was up 1.9 percent to EUR 4.87 billion.

The revenues in its home market were broadly stable, as growth in triple- and quad-play subscriptions helped offset the difficult economic environment. The number of revenue-generating units in the fixed market rose by a net 26,000 in the three months to 5.184 million, led by growth in broadband and pay-TV. PT provided an average 2.14 services to each customer, versus 2.06 a year ago, helping ARPU increase 0.9 percent year-on-year to EUR 32.1.

Mobile customers were down by 42,000 in the same period to 7.854 million, due entirely to the loss of prepaid customers. The quad-play offer helped drive net additions of 150,000 postpaid mobile customers in the quarter. Mobile ARPU was still down 9.2 percent year-on-year to EUR 7.0 as bundled and flat-fee offers put pressure on prices. Data grew to 37.7 percent of service revenue, from 35.9 percent a year ago.


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Source: TendersInfo (India)


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