Sonaecom Swings to EUR6.7 Million Loss in 2Q on Higher Investment

LISBON -(Dow Jones)- Portuguese telecommunications company Sonaecom late Monday reported a EUR6.7 million loss for the second quarter, compared with a EUR1.3 million profit a year ago, with higher investment offsetting the positive effect of a growth in sales.

Revenue rose 10.9% to EUR237.9 million from EUR214.5 million, while earnings before interest, taxes, depreciation and amortization, or Ebitda, fell 11.7% to EUR34.6 million from EUR39.2 million.

Operating capital expenditures rose 27.3% to EUR35 million, driven by higher investment in its mobile business.

Sonaecom, a unit of conglomerate Sonae is looking to expand in the fixed-line telecommunications sector after a failed takeover bid for Portugal Telecom last year.

Sonaecom said its Optimus cellular unit raised its customer base by 11.5% to 2.9 million in the three months to the end of June, while net additions grew 25.3% to over 55,000.

Wireline revenue rose 27.7% to EUR72.4 million over the same period.

Sonaecom has fully consolidated last year's acquisition of the Portuguese assets of Swedish telecommunications operator Tele2 and the fixed-line assets of Oni.

Sonaecom shares closed Monday down EUR0.03, or 1.43%, at EUR2.07, in an overall lower Lisbon market.

-By Filipa Cunha, Dow Jones Newswires; 35-1-21-340-4610; filipa.cunha@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 29th July 2008