Earnings were pressured by an increase in operating costs, but PT’s earnings surpassed market expectations.
Portugal Telecom saw its net profit more than halved in the first three months of the year mainly due to an increase in operating costs, but its earnings surpassed market expectations, which is driving shares higher during the current stock market session.
PT said its net profit dropped 57% to €56.5m in the first quarter of the year, down from €129.7m in the same period last year but higher than the €552m anticipated by the market, as mentioned by Jornal de Negócios.
Earnings before interest, taxes, depreciation and amortisation, or EBITDA, rose to €571.7m from €357.4m.
Although PT revenues increased to €1.72bn from €871.1m last year, operating costs also increased to €1.14bn from €513.7m, pressuring the telecom’s earnings. Both revenue and costs include the consolidation of Brazilian telecommunications group Oi, where PT has a participation since the beginning of 2011.