Portugal Telecom (PT) posted a 41 per cent drop in nine-month net profit yesterday, in line with analyst forecasts, and blamed part of the decline on lay-off costs.
The former state monopoly's net profit fell to €318.6 million from €540.7 million in the same period of 2004.
Portugal Telecom has been touted as a possible bidder for Eircom, although it is now seen as an outsider. Chief executive Miguel Horta e Costa said PT was focusing its international expansion on Brazil, other Portuguese-speaking countries and Asia.
"As always, we are alert to the various investment opportunities that exist, but always in markets where we have a competitive advantage and we believe we can add value," he said.
Revenue at the group's fixed line unit has been slipping while Vivo, its Brazilian mobile phone joint venture with Spain's Telefónica, is facing more competition.
Mr Horta e Costa said PT was sticking to its forecast for a 10 per cent drop in earnings before interest, tax, depreciation and amortisation (Ebitda) this year for TMN, its market-leading domestic mobile phone service.
He blamed the fall on lower interconnection rates and an accelerated launch of third-generation services.
PT blamed part of the profit fall on €254 million in costs for cutting jobs in its fixed-line operations.
