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Namibian, Angolan operations hurt Portugal Telecom revenues

Namibian, Angolan operations hurt Portugal Telecom revenues.

A lower contribution from international operations in Namibia and Angola have partly hit Portugal Telecom (PT) revenues.

This is according to the company’s financial results, which point to a net loss of 15 million euros in the first quarter, while revenues have fallen almost 4% to 690 million euros.

Earnings before interest, taxes, depreciation and amortization (Ebitda) dropped 3.7% to 279 million euros.

Reasons for the poorer performance include pricing, intensified competition, and foreign exchange losses and costs associated with PT’s tie-up with Brazil’s Oi.

PT is combining assets with Brazil's wireless and fixed-line carrier Grupo Oi to form a new company with more than 100 million subscribers.

But a lower contribution from international operations like Namibia's MTC, Angola's Unitel and Timor Telecom have also hit the company.

Portugal Telecom holds a 34% stake as well as a management contract in Namibia's largest mobile network operator MTC.

Meanwhile, PT also owns 25% of the Angolan mobile network Unitel.

Still, it said its client numbers in Portugal grew in the quarter, including fixed, mobile and pay-TV services.

*Additional reporting by Gareth van Zyl.

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