Portugal Telecom profit halves on recession, forex impact

LISBON Thu May 23, 2013 2:52am EDT

LISBON May 23 (Reuters) - Portugal Telecom (PT) said on Thursday its first-quarter net profit halved from a year ago amid a deep recession at home and due to a strong foreign exchange impact on its Brazilian revenues, but it still exceeded market expectations.

PT's net profit fell 52 percent to 27 million euros ($34.8 million), compared to an average of 23 million euros predicted by analysts in a Reuters poll. The fall was cushioned by growing sales of bundled TV, phone and Internet services and a reduction in operating costs of 10 percent to 1.03 billion euros.

PT said earnings before interest, taxes, depreciation and amortization dropped almost 8 percent to 526 million euros, also exceeding analysts' expectations of 515 million euros.

($1 = 0.7766 euros) (Reporting By Andrei Khalip and Filipe Alves)