Portugal Telecom lowers first quarter Capex by 14%

Portugal Telecom today said its Capex (capital spending) on mobile infrastructure dipped 14.3 percent to 102.6 million euros in the first quarter of 2014 (Q1 2014).

The telecom operator’s revenue decreased 3.9 percent to 690 million euros, while it made a net loss of 14.7 million euros in Q1 2014 against a net profit of 26.7 million euros in Q1 2013. Portugal market primarily impacted its revenue streams.

Q1 2014 Capex accounts for 14.9 percent of revenues. Its Capex in Portugal reduced 19.8 percent to 80 million euros in Q1.

Portugal Telecom Capex Q1 2014

Portugal Telecom said it lowered infrastructure and technology related Capex on account of the strong investments made in the past years in both FTTH and 4G-LTE networks.

The company has also reduced its IS / IT related Capex because it made investments in PT’s data center in 2013. Portugal Telecom said it slashed customer related Capex thanks to lower unitary equipment costs and lower churn across the pay-TV and broadband services.

In 2014, Portugal Telecom said its Capex is expected to be below 400 million euros since the recent investments in the modernization of the networks and in technology should lead to a more demand driven Capex.

Capex on other businesses increased by 11.8 percent to 23 million euros in the first quarter, the company said.

TelecomLead Team