Transfer to Hi and Rioforte cause loss of 2500 … – Business Journal – Portugal

Transfer to Hi and Rioforte cause losses of 2.5 billion euros in PT Portugal

Last year the owner of Meo was affected by nonrecurring accounting purposes with the business combination between PT and the Hi and the future sale of the business in Portugal have led to losses of 2.5 billion euros. Excluding these adjustments the loss would drop to about 100 million.

The accounting effects related to non-recurring business combination between PT and the Hi and the sale by the Brazilian operator of the owner of the activity of the Meo Altice led to losses 2.5 billion euros in 2014 accounts of PT Portugal, according to the statement sent to CMVM this Friday, March 27.

Almost all items that generated this negative result will, however, leaving the operator’s accounting framework in the coming months. In fact, if these adjustments were not considered losses would be about 100 million, mainly due to debt interest, according to the CFO of PT Portugal Marco Schroeder.

Of all the losses, 950 million “are relative the exchange rate effect calculated in the sale of direct investment in Hi for PT SGPS occurred in the first half of 2014 “.

The transfer of PT Participações (which holds a participation in Africatel) for PT Portugal contributed 69 million while the loss for the registration of investments in Rioforte securities was 517 million “for its estimated realizable value as part of the exchange with shares of Hi”. The value takes into account the devaluation of the shares in Hi from September (date of approval of the new terms of the business combination) and 2014 and December of that year.

This last item will no longer be present in the accounts PT Portugal next week, on March 31, when the exchange of shares of Hi and PT SGPS is made. The transaction was approved on Thursday by Brazilian shareholders.

There were also 867 million estimated loss of EUR reflecting the assets of Portugal sold to Altice by their respective sale value. That is, the difference of the Hi paid by PT Portugal and what Altice will pay (7.4 billion euros).

These non-recurring items added 324 million euros cost financial related largely to the debt of the company.

Despite these non-recurring items have led to losses of 2.5 billion, Armando Almeida, CEO of PT Portugal, stressed the positive operating performance of the operator. Although revenues have fallen 4.1% to 2.4 billion euros Meo “was the operator that recorded the smallest decrease in 2014,” said the manager in a meeting with journalists on Friday.

In addition, the manager emphasizes that “we are very pleased with 2014 because even in an atypical year we strengthen leadership.”

(updated News on March 28 with more information)