Portugal Telecom’s profit rises 4.9 pct to record 654 million euros in 2005

7 March 2006

Lisbon, Portugal, 07 March – Profits at Portugal Telecom (PT) increased by 4.9 percent last year, as compared with 2005, to 654 million euros, against market expectations of a fall in net profit, the company said Monday.

The average of estimates from six investment houses pointed to PT’s profits having fallen 24.6 percent to 440.8 million euros in 2005.

In a regulatory statement PT said that operating revenue rose by 7 percent 6.385 billion euros and earnings before interest, tax, depreciation and amortization (EBITDA) increased by 5.6 percent to 2.496 billion euros.

Revenue growth at PT was supported by progress at Vivo, a joint venture PT ahs with Spain’s Telefonica in Brazil’s mobile telecoms market, whose revenues rose 27.4 percent to 2.05 billion euros.

PT´s investment in Brazil also benefited the Portuguese operator’s accounts due to a 174 million-euro increase in value of its stake in Internet portal UOL, due to the company being listed for the first time on the stock exchange at a higher price than had been written in PT’s accounts.

The increased value of the Brazilian real against the euro added a further 348 million euros to PT’s accounts.

Costs related to reducing staff by 1,272 jobs totaled 314 million euros.

PT’s operations include all segments of the telecommunications sector: fixed-line, mobile, multimedia, data and corporate solutions.

PT’s international presence extends to countries such as Brazil, Morocco, Guinea Bissau, Cape Verde, Mozambique, East Timor, Angola, Kenya, the People’s Republic of China, Macau and Sao Tome and Principe. (macauhub)