(Corrects fourth paragraph to remove reference to cash flow)
* Net profit helped by cost cuts, one-off asset sale
* Bundled pay-TV, Internet sales cushion revenue drop
LISBON, Feb 28 Portugal Telecom (PT)
beat expectations with a 10 percent rise in quarterly net
profit, helped by lower operating costs and a gain from
disposals while revenue fell amid a deepening recession in
PT said on Thursday fourth-quarter net profit rose to 41.4
million euros ($54 million), compared with a forecast for 29
million in a Reuters poll.
The result was helped by a 10 percent cut in operating costs
to 1.08 billion euros and a gain of 30 million from asset sales
in Brazil by Oi operator, in which PT has a 25
PT said earnings before interest, taxes, depreciation and
amortization (EBITDA) rose 1 percent to 540 million euros, in
line with expectations for 538 million.
Revenue fell 6.7 percent to 1.61 billion euros, meeting
forecasts, with Brazil's largest telecommunications company Oi
bringing in 747 million, down 4 percent.
PT's domestic revenue fell 8 percent to 660 million euros in
the quarter, during which it saw a rise in the number of
internet and pay-TV clients.
Bundled "triple-play" TV, internet and phone services under
PT's MEO brand, which the company said was "highly diversified
and resilient to adverse economic conditions" supported a 3.4
percent increase in sales in the residential segment, which
reached 178 million euros.
The number of MEO clients rose 17 percent to 1.22 million.
($1 = 0.7628 euro)
(Reporting By Filipe Alves and Andrei Khalip; Editing by Dan