Portugal Telecom reported first-quarter net profit down 51.7 percent from a year earlier to EUR 26.7 million, hurt by an increase in financing costs and taxes. Revenues fell 9.5 percent to EUR 1.553 billion, hurt by the weaker Portuguese market and negative currency effects in Brazil. EBITDA fell a slower 7.9 percent to EUR 526.3 million, thanks to 10.3 percent reduction in operating costs. Capex increased 10.7 percent due to investments at Oi in Brazil to EUR 296.5 million, while operating cash flow was down 49.0 percent to EUR 57.9 million. Adjusted net debt increased to EUR 7.91 billion, or 3.6 times EBITDA.
In Portugal, revenues were down in all segments apart from consumer fixed-line, with the total dropping 6.8 percent to EUR 634.4 million. EBITDA was down 11.7 percent to EUR 271.6 million amid a rise in personnel costs. The operator lost another 8,000 fixed lines in the three months, while adding 9,000 broadband customers and 11,000 TV subscribers in the retail business. The mobile customer base was stable compared to the end of 2012, at a total 1.514 million, while ARPU was down 10.7 percent year-on-year to EUR 21.7.
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