Portuguese telecoms company NOS reported a 5.7% drop in first-half net profit on Wednesday, due to higher consumption costs after a strong investment in the 5G network and higher interest rates, as revenue and underlying earnings rose.
NOS, whose businesses include cable TV and cinemas, posted a net profit of 80.5 million euros ($90.11 million) between January and June.
Consolidated revenue increased by 4.5% to 775.2 million euros compared to the previous year, the company said in a press release.
As the company invested 251 million euros during this period, part of which is in its 5G wireless network, amortization costs increased by 7% to 237 million euros.
Its 5G network covered 90% of Portugal’s population in March, NOS reported, which a year ago was in the early stages of rolling out the new technology.
The company said consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose 9.4% to 352.6 million euros, while EBITDA margin — a key measure of profitability — improved 2.0 percentage points to 45.5%.
($1 = €0.8933) (Reporting by Sergio Goncalves; Editing by Andre Khalil)
