Portugal Telecom's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Portugal Telecom (PT)

Q2 2012 Earnings Call

August 2, 2012 11:00 AM ET

Executives

Zeinal Bava – CEO

Luís Pacheco de Melo – CFO

Analysts

Paul Marsch – Berenberg Bank

Ivón Leal – BBVA Research

Georgios Ierodiaconou – Citi

Frederic Boulan – Nomura

James McKenzie – Fidentiis

Mathieu Robilliard – Exane BNP Paribas

Presentation

Operator

Greetings and welcome to the Portugal Telecom 2012 First Half Results Conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

(Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Zeinal Bava, CEO for Portugal Telecom. Thank you. You may begin.

Zeinal Bava

Okay, thank you very much. Good afternoon, ladies and gentlemen. Thank you very much for being on this call. I’m here with our CFO, Luís Pacheco de Melo, and our financial team as well our IR Director, Nuno Vieira.

We are here today because of the announcement of Portugal Telecom’s First Half Results. Our first half 2012 results, consolidated operating revenues amounted to EUR3,345 million while EBITDA reached EUR1,141 million. Consolidated EBITDA margin stood at about 34.1% and that was underpinned very much by the solid margin of the Portuguese telecoms businesses, which reported margins in excess of 45%.

Net income reached EUR125 million and basic earnings per share stood at EUR0.15. In the first half of 2012, our consolidated CapEx amounted to EUR522 million, that’s equivalent to 15.6% of revenues. In the first half as well, EBITDA minus CapEx amounted to EUR619 million, while EBITDA minus CapEx of the Portuguese businesses amounted to EUR377 million. In the first half of 2012, operating cash flow amounted to EUR287 million.

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