Nos with losses of 10.4 million euros. Telecom strengthens provisions for customer debts
The Portuguese company justifies the fall with "the impacts of the Covid-19 pandemic".
The company recorded losses of 10.4 million euros in the first quarter of the year, which compares with profits of 42.5 million euros recorded in the same period of the previous year. The company justifies the fall with “the impacts of the Covid-19 pandemic, non-recurrent items increased by 42.4 million euros, the majority of which reflecting reinforcement of operating provisions for customer bad debt.”
Also, the company states that “the contribution from Associated Companies deteriorated significantly YoY to losses of 8.8 million euros, with similar negative contribution from Sport TV due to impairments recorded in the quarter and at ZAP due to provisions booked,” in a communiqué sent to the Securities Market Commission (CMVM).
Nos operational activity increased, although not significantly, reflecting the restrictions resulting from the pandemic. If, on the one hand, household consumption was stable, there was “pressure” on the business side due to the reduction or complete closure of commercial initiatives. Thus, the number of services provided grew by 2.1% to 9.708 million.
The company’s cinema and audiovisual activity was one of the most affected by the pandemic, and it was determined to close down in mid-March. The company stresses, despite everything, that the investment was reinforced in this period, namely in the telecommunications area, to 88.2 million euros, excluding leasing contracts.
The revenues fell 3% year-on-year to 345.4 million euros, “as a result of the significant slowdown in commercial activity”, the company notes. In the first quarter, EBITDA reached 152.7 million euros.
At last, the company says it is preparing for the next “growth wave”. It will contribute to this by selling the company that owned the telecom towers to Cellnex Telecom. “This sale, whose process was already underway before the pandemic, allows capital employed in non-differentiating assets to be released, reinvesting in projects to improve the experience of our customers and future growth,” stresses Miguel Almeida, CEO of Nos, quoted in a statement.
