Portugal's Sonaecom 3Q Net Profit Drops To EUR1.4 Million Vs EUR4.2 Million

Portuguese telecommunications company Sonaecom SGPS S/A (SCN.LB) said late Sunday its third quarter net profit dropped on the year on lower operating profit and revenue.

In a filing to the Portuguese stock market regulator, the company said it posted a third quarter net profit of EUR1.4 million compared with a EUR4.2 million net profit registered in the same period a year ago.

Sonaecom's earnings before interest and taxes dropped to EUR5.3 million from EUR7.8 million the year earlier, while revenue fell to EUR235 million from EUR251.3 million.

However, in the first nine months of the year, the company's net profit grew to EUR2.8 million on a much improved earnings before interest, taxes, depreciation and amortization and a nearly 12% reduction in net financial charges. That compares to a EUR8.1 million loss posted in the same period of 2008.

"Sonaecom's performance during the first nine months of 2009 was very positive and, in certain aspects, exceeded our expectations," said the company's chief executive officer, Angelo Pauperio, adding that "while growing its presence in the market, Sonaecom is achieving increased profitability and cash flow generation."

Sonaecom, a unit of conglomerate Sonae SGPS SA (SON.LB), is a competitor of Portugal Telecom SGPS SA (PT) and ZON Multimedia SGPS SA (ZON.LB).

Regulator Web site: http://www.cmvm.pt

-Enza Tedesco, Dow Jones Newswires, [e-mail]

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