LISBON, Nov 30 (Reuters) - Portugal Telecom (PT) posted a 29 percent fall in third-quarter net profit, in line with market expectations, due to a deepening recession in debt-laden, bailed out Portugal.
PT’s net profit fell to 64 million euros ($83 million), compared to an average of 63 million euros predicted by analysts in a Reuters poll, even as the company cut operating costs by almost 4 percent to 1.05 billion euros.
In a statement issued late on Thursday, PT said earnings before interest, taxes, depreciation and amortization, a key measure of cash flow known as EBITDA, fell 10 percent to almost 588 million euros, exceeding analysts’ expectations of 566 million euros.
Revenues fell 6 percent to 1.64 billion euros, also coming in above the consensus of 1.61 billion euros, with Brazil’s Oi bringing in 753 million euros, or 6 percent less than a year ago. PT owns a 25 percent stake in Brazil’s largest telecommunications company, whose results have been improving lately.
PT has said earlier its domestic revenue fell nearly 7 percent to 682 million in the third quarter due to the bailed out country’s deep recession, although a rise in the number of internet and pay-TV clients cushioned the decline. ($1 = 0.7705 euros) (Reporting By Andrei Khalip)