“We are aware that the new future of PT will be outlined at today’s General Meeting (...) It’s a hard time of change but on the other hand it’s also a time of opportunities. I am absolutely sure that the interests and the people that comprise the PT Group today, like in many other
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Henrique Granadeiro, PT Chairman |
tough times in the past, will know how to find the path to this new future”.
The PT Chairman, Henrique Granadeiro, concluded his intervention at the General Meeting with the presentation of the Group’s performance in 2006, the balance of the various businesses and the commitments resulting from the shareholder remuneration proposal.
The thirteen points submitted at the meeting were approved by the majority featuring over 90% of the votes. “2006 will always be remembered in the history of the Group, due to the launch of a takeover on 6th February by Sonaecom which would, one year later be on 2nd March, be overthrown”. This unforgettable event was the starting point for an exhibition on the evolution of the businesses and results achieved.
Henrique Granadeiro could not let this moment go by without enhancing the contribution of the Portugal Telecom co-operators. “Another aspect that ought to be enhance is the professionalism, effort and sense of future demonstrated by top management and by all the staff in general.. Thanks to its focus on daily performance, it was possible to recover in the 2nd half the growth trend and it was also the awareness and convergence on the essential that allowed for the celebration of structural reform agreements in areas considered untouchable. These structural reforms assure the sustainability of the economic and social model of the PT project for the future”, said the Chairman of the PT Group.
As pertains the 2006 results, Henrique Granadeiro underlined the achievement of a “healthy financial situation” that shows “the good operational moment of the various businesses of Portugal Telecom, specially during the second half”.
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Zeinal Bava, Deputy Chairman of
the PT Group and Henrique Granadeiro |
Portugal Telecom’s net results increased 33 per cent in comparison to 2005, having attained Euro 867 million, the highest value in the history of the group and the Operational Free Cash Flow increased around 23 per cent. As pertains pension funds – the deficit decreased approximately one billion euros in one year. The board of PT set the goal of financing the remaining amount in merely 6 years. A set of indicators that justify, in the words of the Chairman, “the optimism with which we face 2007”.
At the presentation of the business by business results, the Chairman of PT underlined the following aspects:
- In the fixed business, improvement of the operational performance with an increase in ADSL
- In the mobile business, a client growth of 117% in the fourth quarter registering improvement of global rentability
- In PTM, growth of the network, increase of TV and Internet clients and digital services
- In Vivo, the improvement in performance in the fourth quarter confirms its recovery
- In other international assets, a strong operational and financial performance was registered
In 2006, the distributable reserves increased Euro 720 million in 2005 to Euro 2.728 million in 2006, as a result of the capital reduction concluded in September 2006 and a restructuration based on the transfer of financial holdings in PT Comunicações and in TMN to PT Portugal. At the GM, the shareholders considered an operation to increase and decrease capital – point 8 and 9 on the agenda – that will allow to reinforce the distributable reserves of around Euro 400 million. The amount necessary to comply with the date put forward in the shareholder remuneration plan.
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The PT Chairman dedicated some words to the performance of the company within the stock exchange. Two months after the close of the takeover, the valorization of Portugal Telecom SGPS had surpassed 27% and of PTM it was over 26% in relation to the listing prior to the takeover. This valorisation corresponds to an increase in market capital of over Euro 2,54 billion in the case of PT SGPS and Euro 0,8 billion in the case of PTM. “These results show the market recognition as to the operational performance of the Group, which will certainly support a future valorisation of the title in line with the commitments assumed by this Management Team”, underlined Henrique Granadeiro.
About the shareholder remuneration proposal which the PT Group has committed itself until 2009, the following points were voted and approved:
• Regular dividend of 47,5 cents per share, which will then be of 57,5 cents following the conclusion of the repurchasing of shares, totalling Euro 1,9 per share.
• The programme for acquisition of own shares totalling Euro 2,1 billion corresponding to 1,9 euros per share.
• The distribution of 180,6 million shares of PT Multimedia to PT shareholders, totalling approximately Euro 2.200 million, an equivalent to approximately 1,9 euros per PT share.
The spin off operation of PT Multimedia, approved at the GM, will be carried out by the Board of Directors “possibly in the third quarter of this year and certainly until December 2007”. “This is the most favourable solution for consumers and for the Portuguese in general and also the one that best maximises value for PT shareholders”, highlighted the Chairman.