The company's net profit fell to 21 million euros ($28.2 million) from 64 million euros in the same period a year earlier, but still exceeded analysts' average forecast of just 4 million euros. In the nine first months of 2013, net profit was still up 64 percent to 305 million euros.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the third quarter fell 15 percent to 498 million euros, the company said, above analysts' expectations of 472 million euros.

Total revenues fell 11 percent to 1.45 billion euros, while operating costs fell 9 percent to 957 million euros.

In Portugal, which is only starting to emerge from its deepest recession in decades, revenues fell 6 percent to 640 million euros as prices fell partly due to growing competition.

In Brazil, revenues from the company's 25 percent stake in telecoms firm Grupo Oi fell 16 percent to 632 million euros - but PT said Oi's consolidated revenues in Brazilian reais rose almost 1 percent and the drop in euros on PT's books was due to the real's depreciation.

PT is in the process of merging with Oi to form a new company with more than 100 million subscribers and almost $19 billion in annual revenue.

(Reporting by Andrei Khalip; Editing by Pravin Char)