Takeover target Portugal Telecom posts record profit in 2005

0 Comments | AFP, March, 2006

LISBON (AFP) — Portugal Telecom, the target of a hostile takeover bid by conglomerate Sonae, posted a record net profit of 654 million euros (787.8 million dollars) in 2005, a 4.9 percent increase over the previous year.

Analysts had forecast the former state monopoly's net profits last year would drop compared with 2004 to between 383 and 480 million euros.

The company benefited from stronger-than-expected growth at Vivo, the mobile venture it operates in Brazil together with Spain's Telefonica.

It said it would pay a dividend of 0.475 euros per share in 2005, compared with 0.35 euros a year earlier, a move set to shore up its share price ahead of a potential battle for the control of the company.

Operating revenues increased to 6.38 billion euros...