2013 Full Year Results



Portugal Telecom announced today its 2013 full year results

Consolidated financial highlights (1) Euro million
2013 2012 y.o.y
Operating revenues  2,911 3,079 (5.4%)
Operating costs (2) 1,749 1,789 (2.2%)
EBITDA (3) 1,162 1,290 (9.9%)
EBITDA margin (4) 39.9 41.9 (2.0pp)
Income from operations (5) 396 467 (15.3%)
Net income 331 226 46.6%
Capex 589 661 (10.9%)
Capex as % of revenues (%) 20.2 21.5 (1.2pp)
EBITDA minus Capex 573 629 (8.8%)
Operating cash flow 508 577 (11.9%)
Free cash flow 376 251 49.8%
Adjusted net debt (6) 4,619 4,566 1.2%
After-tax unfunded PRB obligations 738 625 18.1%
Adj. net debt/EBITDA (x) (7) 3.5 3.3 0.2x
Basic earnings per share 0.39 0.26 46.9%
Diluted earnings per share (8) 0.39 0.26 46.1%

 (1) 2012 figures were restated in order to reflect the impacts of the adoption of the IFRS 11 Joint Arrangements and of the revised version of IAS 19 Employee Benefits, as explained in more detail under the section "Other disclosures, changes in accounting policies and estimates"
(2)  Operating costs = wages and salaries + direct costs + commercial costs + other operating costs
(3) EBITDA = income from operations + post retirement benefits + depreciation and amortisation
(4) EBITDA margin = EBITDA / operating revenues
(5) Income from operations = income before financials and income taxes + curtailment costs + losses (gains) on disposal of fixed assets + net other costs (gains)
(6) Net debt was adjusted for the unused tax credits related to the transfer of the regulated pension plans to the Portuguese State
(7) Net debt and EBITDA were adjusted to consider Oi and Contax as proportionally consolidated
(8) Earnings per share computed using net income excluding the costs associated with the convertible bonds divided by the diluted number of shares.

Conference call details:

Date: 19 February 2014
Time:
16:00 (Portugal/UK),
17:00 (CET),
11:00 (USA/NY) 
Telephone numbers
Outside US: +1.201.689.7817
USA and Canada: 877.269.7756

If you are unable to attend the conference calla replay will be available for one week through the following numbers::

Outside US: +1.201.612.7415
(Conferencal ID: 13575042
USA and Canadá: 877.660.6853
(Conference call ID: 13575042)
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