Press Release - First Half 2009 Earnings Release
Portugal Telecom posted net income of Euro 256 million in the first semester of 2006, which represents a 1.7% increase compared to the first semester of 2008, thus beating market expectations that had announced a slight decrease. International operations accounted for 50% of consolidated operating revenues, which amounted to Euro 3,231 million.
Portugal Telecom reached a customer base of 74 million at the end of the first semester, an increase of 11 million y.o.y. In its domestic market, PT posted 824,000 net additions in its customer base y.o.y.
As to wireline, it is worth highlighting a 1.2% increase in revenues y.o.y., compared to an European average in the sector of approximately -3%, the best performance of the last 18 quarters. The significant increase in retail net additions during the first semester of 2009 -137,000 – is explained by the success of PT’s television offer. Meo reached 443,000 customers, an increase of 327,000 customers y.o.y. As to broadband, PT increased its customer base by 130,000 y.o.y. to 781,000 customers.
This is the fifth consecutive semester of growth in customer revenues in terms of mobile business. TMN increased its customer base by 7.6% y.o.y., having reached 6.980 million customers. Customer revenues amounted to Euro 289 million, an increase of 1.6% y.o.y. on the back of customer growth namely in mobile broadband. Post paid customers account for 32% of total customers at the end of June 2009, an increase of 5pp y.o.y.
The contribution of the international assets to operational revenues rose to 49.8%, while the operations in Brazil accounted for 46.1% of consolidated operational revenues.
CAPEX in Portugal amounted to Euro 285 million in the first semester of 2009, an increase of Euro 80 million y.o.y. primarily as a result of the FTTH rollout. At domestic and international level, total CAPEX amounted to Euro 506 million in the fist semester of 2009, an increase of 41% y.o.y.
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Consolidated financial highlights |
|
|
|
|
|
Euro million |
|
|
2Q09 |
2Q08 |
y.o.y. |
1H09 |
1H08 |
y.o.y |
|
Operating revenues |
1,627.0 |
1,668.2 |
-2.5% |
3,231.5 |
3,240.1 |
-0.3% |
|
Operating costs, excluding PRBs and D&A |
1,032.1 |
1,082.6 |
4.7% |
2,034.0 |
2,048.7 |
-0.7% |
|
EBITDA (1) |
594.9 |
585.5 |
1.6% |
1,197.5 |
1,191.5 |
0.5% |
|
Income from operations (2) |
230.4 |
261.6 |
11.9% |
484.4 |
560 |
-13.5% |
|
Net income |
89.7 |
112.1 |
20.0% |
256.1 |
251.9 |
1.7% |
|
Capex (3) |
282.1 |
215.9 |
30.6% |
505.9 |
358.4 |
41.1% |
|
Capex as % of revenues (%) |
17.3 |
12.9 |
4.4pp |
15.7 |
11.1 |
4.6pp |
|
EBITDA minus Capex |
312.8 |
369.6 |
15.4% |
691.6 |
833.1 |
-17.0% |
|
Free cash flow |
226.7 |
-1,683.0 |
n.m. |
134.9 |
6.7 |
n.m. |
|
Net debt |
6,156.2 |
5,800.0 |
6.1% |
6,156.2 |
5,800.0 |
6.1% |
|
After-tax unfunded PRB obligations |
1,291.4 |
1,107.1 |
16.7% |
1,291.4 |
1,107.1 |
16.7% |
|
EBITDA margin (%) (4) |
36.6 |
35.1 |
1.5pp |
37.1 |
36.8 |
0.3pp |
|
Net debt / EBITDA (x) |
2.6 |
2.5 |
0.1x |
2.6 |
2.4 |
0.1x |
|
EBITDA / net interest (x) |
8.2 |
9.0 |
(0.8x) |
8.3 |
10.3 |
(2.0x) |
|
Basic earnings per share |
0.10 |
0.12 |
-17.4% |
0.29 |
0.27 |
9.6% |
|
Diluted earnings per share (5) |
0.10 |
0.12 |
-15.6% |
0.29 |
0.26 |
9.00% |
(1) EBITDA = income from operations + post retirement benefits + depreciation and amortisation. (2) Income from operations = income before financials and income taxes + curtailment costs + losses (gains) on disposal of fixed assets + net other costs (gains). (3) Excludes additional commitments under the terms of the UMTS licence (Euro 11.5 million in 1H09) and the acquisition of 3G licenses in Brazil (Euro 227 million in 2Q08). (4) EBITDA margin = EBITDA / operating revenues. (5) Earnings per share computed using net income excluding the costs associated with the convertible bonds divided by the diluted number of shares.