Continued growth in customers, revenues and traffic with improvement in consolidated profitability.

Transcription

1 Sonae.com SGPS, SA Rua Henrique Pousão 432 7º Piso Senhora da Hora Portugal Telefone (+351) Fax (+351) Consolidated Results for the Third Quarter 2001 Oporto, Portugal, 29 th October 2001 Continued growth in customers, revenues and traffic with improvement in consolidated profitability. Change KEY OPERATING HIGHLIGHTS 3Q00 2Q01 3Q01 3Q01/3Q00 3Q01/2Q01 Optimus subscribers (EoP - thousands) % +8,5% Optimus ARPU (euros) 33,9 28,2 29,4-13% +4,3% Novis active customers indirect access ( % +33% days) Direct accesses installed % +43% Traffic on Novis Network (millions of mins) % +3,5% Clix active dial-up users (30 days) % +6,4% Clix monthly page-views (EoP - millions) % +16% KEY FINANCIAL HIGHLIGHTS (thousands of euros) Consolidated Turnover % +9,8% Stand-alone Optimus Turnover % +14% Novis Turnover n.c. +11% Clix Turnover n.c n.c. +106% Publico Turnover ,3% -17% Consolidated EBITDA % +9,5% Consolidated EBITDA eliminating SAC % +7,7% deferral Consolidated CAPEX % +7,3% Consolidated Net debt (millions of euros) % +3% n.c. : not comparable (in 3Q00 Clix and Novis were not demerged) Today SonaeCom announced consolidated results for the third quarter of OPERATING HIGHLIGHTS SonaeCom registered strong customer growth: o Optimus increased its customer base by 141 thousand new subscribers (+ 8,5%) ending the period with almost 1,8 million subscribers; 1

2 o Novis active customer base (last 30 days) increased 33% qoq to over 89 thousand, 55 thousand of which were pre-selected customers at the end of September, up by 142% from 23 thousand at the end of June. o Clix increased its active dial-up users (30 days) by 13 thousand (+6%) to end the quarter with over 216 thousand. Audience of the Clix portal continued to grow increasing to 50,9 million page views in September, up from 44 million in June. Unique visitors rose 26% to 827 thousand in September compared with 655 thousand in June. o Publico s average daily paid circulation during the month reached 56,3 thousand in 3Q01 which compares with 52,6 thousand during 1H01, continuing to stand at the forefront of the daily reference press in Portugal. o WeDo has also been increasing its third-party IT consultancy business and has recently closed an important contract in Brazil, estimated to be worth 3,4 million euros. Traffic continues to increase across the Group: o Total traffic over the Novis network increased to 563 million minutes, up from 544 in 2Q01. Voice traffic increased by 14,6% in the same period. The Clix ISP generated 433 million minutes of traffic in the third quarter. Optimus generated 608 million minutes of traffic in 3Q01, with 179 million SMS transmitted over the network. CONSOLIDATED FINANCIAL HIGHLIGHTS Growth in revenues and profitability: o Consolidated turnover was 193 million euros in 3Q01, up from 176 million euros in 2Q01, an increase of nearly 10%. Cumulative turnover to the end of 3Q01 stood at over 523 million euros. o Consolidated EBITDA for the first 9 months of 2001 stood at 33 million euros representing a consolidated margin of 6%. EBITDA in 3Q01 increased 9,5% from 11,9 million euros in 2Q01 to 13 million euros. o Investment in fixed assets for the period to end of September was 120 million euros, 78 million of which was invested at Optimus and 23 million at Novis. During the third quarter consolidated CAPEX amounted to almost 39 million euros. o At the end of September SonaeCom s consolidated gross debt stood at 553 million euros and net debt stood at 485 million euros. The SonaeCom indivi dual accounts presented a net cash balance of 90 million euros at the end of September, which compares with 135 million at the end of the 1H01. 2

3 REVIEW OF OPERATIONS OPTIMUS Optimus continues to deliver strong growth in customers and revenues in line with the company s stated strategy. In 3Q01, Optimus grew its subscriber base by 141 thousand net additions, of which 28% were contract customers. With a customer base of almost 1,8 million customers, 1,606 million of which were active, Optimus estimates that it ended the quarter once again gaining market share. Service revenues in 3Q01 increased by 14% to 149 million euros up from 131 million euros in 2Q01. Monthly average revenue per user (ARPU) in 3Q01 was 29,4 euros, up from 28,2 euros in 2Q01 and from the 1H01 ARPU of 27,8 euros. Average revenues per minute of billed airtime (MoU) evolved positively up to 0,24 euros from 0,23 euros in the previous quarter. Along with the gain in market share and customers Optimus registered consistent improvement in profitability. EBITDA eliminating SAC deferral margin grew by 1,2 pp to 12,9% up from 11,7% in 2Q01. Cash operating margin per user, the difference between ARPU and CCPU (monthly cash cost per user) grew to 2,2 euros and improved by 69% compared with the 2Q01 margin of 1,3. Revenues from data amounted to 9,7 mn euros in 3Q01, circa 9,8% of customer revenues, which compares with 9,8 mn euros in 2Q01. The slight reduction in revenues is due mainly to the fact that Optimus resolved its SMS billing issue (SMSs that previously were not being charged started to be charged as of mid June) and that it increased SMS prices on some of its tariff plans. These changes naturally temporarily impacted volumes of SMS sent and data revenues. NOVIS Novis customer base delivered encouraging growth in the quarter and the market segment on which Novis focuses, SMEs, delivered strong growth with customers up by 31% to 4,2 thousand customers. Although growth in the lower revenue segments of the market has also been positive, Novis firmly believes that the future of the business model in Portugal lies in exploring the higher margin SME and SOHO segment, markets which Novis believes it is leading. This market approach is led by a distribution strategy based on specialized agents channels. Novis has 120 indirect sales representatives promoting the Novis SME offer. Novis increased its total indirect active customers by 33% in 3Q01 to 89 thousand customers compared with 67 thousand in June. More importantly however the ratio of pre-selected customers to active customers increased from 34% to 62%, an indication that Novis customer base is gradually migrating to a contract based relationship rather than a call-by-call selection process. Voice traffic in the quarter increased by 14.6% reflecting the growth in pre-selected customers. The revamping of Novis frame-relay offer provided a favourable environment for growth in direct access connections which increased by 43% in 3Q01 to 791. The rise in turnover in 3Q01 was slightly less than the growth in traffic, 11%, the reason being that as the ratio of pre-selected customers to total active customers increases, so does the weight of lower-priced local calls in the overall traffic mix. IT sales also reflected a natural slowdown during the summer months. Novis now has a fully operational backbone with 685 kms of lit fibre connecting Lisbon to Porto and is activating further routes to connect all major cities. Novis currently channels 10% of its overall traffic over its own backbone and expects to gradually increase this over the coming 12 3

4 months, as existing fixed-term leased-lines contracts fall away. MAN construction is underway in both Porto and Lisbon and at the end of 3Q01 Novis has an extension of 320 km of active MAN including 146 kms of lit fibre and 174 kms of microwave links. Besides Porto and Lisbon Novis has concentrated its MAN construction on baby MANs that link up to the backbone, the incumbent s local switches and to Optimus major nodes. The baby MANs will be used primarily for transmission but also to allow fibre based access to end customers. Unbundling of the local loop is potentially an important element of the Novis local access strategy. Accordingly the need for clearly viable economical and technical regulatory guidelines is critical. Conditions currently presented by the incumbent to alternative operators are far from satisfactory both in terms of economic viability and in terms of the necessary technical adjustments on the ground. It is fair to say that the process is currently overrunning its announced timetable by 10 months and that the sector is still no closer to a satisfactory framework for offering local access. MATRIX Clix is the leading brand for residential internet access in Portugal. At the end of September, the Clix ISP had 216 thousand dial-up users, active in the last 30 days and the portal had been visited by 827 thousand unique visitors and registered 51 million page views in September. Clix generated a total of 433 million minutes of traffic in 3Q01. The long awaited change from a revenue-sharing model to an interconnect model for the internet access business finally came into effect as of 1 August. For the last two months of 3Q01, Clix started to receive 100% of all revenues generated by Internet traffic over its network and then paid back to the incumbent costs relating to interconnection. As Novis is the infrastructure provider for the SonaeCom Group, Clix then pays a fee to Novis for supplying and maintaining the ISP network. The immediate financial effects of the shift to the new model are that Clix s access revenues have increased almost three times (from 35% of local-call rate with the revenue-sharing model to 100% with the new model) and that margins (gross access margin and gross margin net of ISP network charges paid to Novis) have improved significantly. Clix s accounts for 3Q01 reflect only two months of the new model. SonaeCom maintains that it is entitled to the benefits of the change to the new interconnect model as from March 2001 and not only from August, as is currently the case. The defence of this position has been presented to the ICP and an arbitration process is currently underway with the supervision of the regulator. The results presented do not include any additional potential income prior to August. Both the online and offline assets within Matrix suffered the impact of the sector-wide slump in advertising spend. However the effect was particularly obvious for the online vortals whose business models are more dependent on both advertising and e-commerce revenues. Notwithstanding the reduction felt in the advertising market, Publico increased its share of publicity in 3Q01 to 19,3% from 17,5% in the same period last year. Audience continues to show healthy growth and Público stands out as the clear leader in market segments ABC1 in terms of readership metrics for daily newspapers. Publico s turnover in 3Q01 was in line with the same quarter last year although lower than 2Q01, a fact that is explained by the high degree of seasonality in the newspaper advertising revenues. Publico s mix of advertising revenues is strongly biased towards institutional publicity, which typically takes a sharp drop in the summer months. 4

5 Contrary to the general trend, Publico.pt actually increased advertising revenues in 3Q01 by 17% to 192 thousand euros, which compares with 164 thousand in 2Q01. Audience at Publico.pt naturally reflects the news coverage of the terrorist crisis and during the month of September, the portal received 290 thousand unique visitors compared with 221 thousand in June. Of the other assets within Matrix, exit.online.pt, the Group s online travel vortal, is a showcase example of e-commerce in Portugal. In 3Q01, exit s gross revenues amounted to 716 thousand euros, up 61% on the previous quarter. Also within the online universe, miau.pt started to generate commissions on auctions hosted although the initial income is still relatively small. In total, aggregate e-commerce revenues at Matrix year to end of September amounted to 74 thousand euros and online advertising revenues to 1,3 mn euros. Matrix is a balanced portfolio of online and offline media assets. As such it manages options to invest or to divest in internet related growth opportunities. In order of strategic importance to this portfolio Clix stands out as the most promising investment for the SonaeCom Group and Publico as a protective strategy to have access to quality content. The other online and offline assets within this arm of the business represent a portfolio of options in high potential segments and is managed accordingly. VENTURES The IT sector is in general under some pressure, nevertheless the investment within the Ventures arm of SonaeCom are, on the whole, performing according to plan in terms of revenues and results. WeDo, the systems integration consultancy company for the telecommunications sector, continues to increase third-party revenues and has recently secured a project with the leading private Telco operator in Latin America, Telemar. The project is estimated to be worth 3,4 million euros for WeDo in turnover. Enabler, the systems integration consultancy company for the retail sector is consolidating its position in the UK and establishing its international position as a leading retail solutions provider. Stand-alone turnover at WeDo and Enabler 9 months to September amounted to 13.1 and 12.7 mn euros respectively. REGULATORY ISSUES On the 24 th October, the Portuguese Telecomunication s regulator (ICP) announced a delay of one year, to 31 st December 2002 of UMTS obligations. The ICP has reserved the right to review this position in 3Q02. The news of this formal delay is positive for Optimus as it pushes out its UMTS CAPEX profile. As regards the future competitive landscape, SonaeCom feels that mobile virtual network operator licenses are a market approach that should only be contemplated in a UMTS enabled environment. The regulator has already determined that an additional GSM license shall not be attributed and therefore it is unrealistic to expect that a non-infrastructure based operator may be granted roaming rights onto existing GSM operators in the near term. Optimus and TMN are currently in disagreement regarding the mobile-to-mobile interconnection rate that Optimus is being charged by TMN. Optimus is considering presenting its case to the ICP to request that it arbitrate the issue in order to reach an acceptable mobile-to-mobile interconnection rate for the market as a whole. SonaeCom s case against Portugal Telecom regarding the timing of the change to the interconnection model for internet access is also being analyzed by the ICP in an arbitration process. SonaeCom s accounts reflect the most conservative scenario for the Group in respect of both mobile to mobile interconnect rates and internet access 5

6 FINANCIAL REVIEW of Third Quarter Results Consolidated Turnover at SonaeCom for the first 9 months of 2001 amounted to 523 million euros. Turnover in the third quarter rose circa 10% on the previous quarter to 193 million euros. Optimus contribution to consolidated turnover in the quarter was 84% and Novis and Matrix contributed 7% each. Consolidated EBITDA eliminating SAC deferral increased 8% in 3Q01. Novis and Matrix are still negative contributors however Optimus contributed positively with growth of 21% on the quarter. Consolidated EBITDA in the quarter increased by 9% to 13 million euros bringing accumulated EBITDA for the first 9 months of 2001 up to 33 million euros. Consolidated EBIT presented losses of 28 million euros in 3Q01 which compare with losses of 27 million euros in 2Q01. Optimus contribution to EBIT improved by 51% to losses of 2 million euros in 3Q01 versus 4 million euros in the previous quarter. Novis is still the most significant contributor to EBIT losses. At the end of September SonaeCom s consolidated gross debt stood at 553 million euros and consolidated net debt was 485 million euros. SonaeCom s individual accounts reflected a net cash position of 90 million euros, which compares with 135 million euros at the end of June. Consolidated net gearing at the end of September was 91%, calculated by expressing net debt as a percentage of equity plus minority interests. Consolidated accumulated CAPEX for the first 9 months of 2001 stands at 120 million euros, of which Optimus had invested 78 million, Novis 23 million and Matrix 5 million. The continued delay and uncertainty surrounding UMTS is the main reason for the delay in investments at Optimus, howeve r Novis CAPEX plans have also been scaled back to incorporate the repositioning of the roll-out of the local access network that is now more focused. OUTLOOK Despite the adverse conditions felt by the telecom industry as a whole, SonaeCom has delivered consolidated revenue growth and has improved overall levels of profitability during Notwithstanding expectations of continued growth in margins, possible changes in interconnection rates, for both mobile and fixed termination rates, will have a mat erial impact on SonaeCom s future performance. In line with stated strategy, efforts have been made and will continue to be made to reduce costs at subsidiaries to limit cash consumption across the group. As regards funding, Optimus is in the process of raising term bank financing and the Group is looking at additional funding opportunities. Management is comfortable that the Group will obtain the necessary funding for its businesses going forward. In terms of financial and operating performance, providing there is no significant unforeseen deterioration in trading conditions, SonaeCom is confident that it will meet with guidance given to the market at the beginning of the year, namely that it will achieve over 30% growth in revenues for the full year with improvements in operational profitability. 6

7 APPENDICES All figures are presented in thousands of euros unless otherwise stated. I. SonaeCom Consolidated Accounts and Stand-alone Operational Company Highlights II. Consolidated Net Debt and Proportionate Distribution amongst Operating Companies III. Contributions to Consolidated Accounts IV. Key Operating Statistics 7

8 APPENDIX I SonaeCom Consolidated Accounts and Stand-alone Operational Company Highlights 8

9 Sonae Com Consolidated Accounts Profit and Loss highlights Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (57.687) (6.592) (1.139) Depreciation, Amortisations and Provisions EBIT (44.979) (63.914) (25.492) (27.257) (52.749) (28.365) (81.114) Net Results before minorities (6.073) (77.619) (27.046) (29.593) (56.639) (32.306) (88.945) Net Results after minorities (43.437) (15.993) (15.848) (31.841) (18.597) (50.438) CAPEX (excluding Capitalised Costs) Balance sheet highlights Gross Debt Liquidity Equity + Minority Interests Total Net Assets Share capital

10 STAND ALONE FINANCIAL HIGHLIGHTS Optimus stand alone financial highlights Profit and Loss highlights Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (54.721) Depreciation, amortisation and Provisions EBIT (39.241) (2.201) (3.855) (6.056) (888) (6.944) Net Results (19.768) (10.895) (5.226) (6.781) (12.007) (5.039) (17.046) CAPEX (excluding capitalised costs Balance sheet highlights Gross Debt Liquidity Equity Total Net Assets Share capital Novis stand alone financial highlights Profit and Loss highlights Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA (1.464) (33.548) (10.162) (9.852) (20.014) (11.110) (31.124) Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (1.464) (43.380) (11.338) (10.606) (21.944) (12.028) (33.972) Depreciation, amortisation and Provisions EBIT (3.402) (53.132) (17.873) (19.839) (37.712) (22.135) (59.847) Net Results (3.767) (54.840) (18.837) (21.050) (39.887) (23.413) (63.300) CAPEX Balance sheet highlights Gross Debt Liquidity Equity Total Net Assets Share capital

11 Publico stand alone financial highlights Q01 2Q01 1H01 3Q01 YTD Profit and Loss highlights Turnover Service Revenues EBITDA (499) (156) (110) Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (499) (156) (110) Depreciation, amortisation and Provisions EBIT (842) (678) (1.520) (529) (2.049) Net Results (877) (313) (1.190) (400) (1.590) CAPEX Balance sheet highlights Gross Debt Liquidity Equity Total Net Assets Share capital Clix stand alone financial highlights Profit and Loss highlights Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA (5.442) (3.101) (3.194) (6.295) (2.927) (9.222) Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (8.662) (3.494) (3.040) (6.534) (2.858) (9.392) Depreciation, amortisation and Provisions EBIT (6.003) (3.416) (3.552) (6.968) (3.349) (10.317) Net Results (6.008) (2.299) (2.298) (4.597) (1.968) (6.565) CAPEX Balance sheet highlights Gross Debt Liquidity Equity Total Net Assets Share capital

12 APPENDIX II Consolidated Net Debt and Proportionate Distribution amongst Operating Companies 12

13 September/ Consolidated Net Debt and proportionate distribuiton amongst operating companies Company Standalone Gross Debt Standalone Shareh. Loan Standalone Cash Stand Alone Net debt Intercompany Loan Contribut. to Net Debt Optimus 494,6 0,0 0,1 494,5 0,0 494,5 Novis 26,9 65,0 0,2 91,7 36,8 54,9 Clix 0,1 0,0 9,6 (9,5) (9,6) 0,1 Matrix ex Clix 3,3 27,5 1,3 29,5 26,2 3,3 Sonae Com Ventures 0,0 0,0 0,0 0,0 0,0 0,0 Other Subsidiaries 0,1 139,0 1,8 137,3 139,1 (1,8) Sonae Com Holding Company 0,2 12,7 102,7 (89,8) (24,0) (65,8) Total Consolidated Net Debt 525,2 244,2 115,7 653,7 168,5 485,2 Junho/ Consolidated Net Debt and proportionate distribuiton amongst operating companies Company Standalone Gross Debt Standalone Shareh. Loan Standalone Cash Stand Alone Net debt Intercompany Loan Contribut. to Net Debt Optimus 523,4 0,0 0,8 522,6 0,0 522,6 Novis 23,9 74,8 0,4 98,3 74,8 23,5 Clix 0,1 0,0 11,0 (10,9) (11,0) 0,1 Matrix ex Clix 1,2 25,2 0,3 26,1 25,2 0,9 Sonae Com Ventures 0,0 0,0 0,0 0,0 0,0 0,0 Other Subsidiaries 0,4 118,3 0,1 118,6 118,5 0,1 Sonae Com Holding Company 0,1 15,5 150,6 (135,0) (59,2) (75,8) Total Consolidated Net Debt 549,1 233,8 163,2 619,7 148,3 471,4 Março/ Consolidated Net Debt and proportionate distribuiton amongst operating companies Company Standalone Gross Debt Standalone Shareh. Loan Standalone Cash Stand Alone Net debt Intercompany Loan Contribut. to Net Debt Optimus 503,7 0,0 0,7 503,0 0,0 503,0 Novis 21,5 69,5 0,3 90,7 69,5 21,2 Clix 0,4 0,0 7,6 (7,2) (7,5) 0,3 Matrix ex Clix 0,1 11,8 0,1 11,8 11,9 (0,1) Sonae Com Ventures 0,0 0,0 0,0 0,0 0,0 0,0 Other Subsidiaries 0,6 116,3 1,2 115,7 116,3 (0,6) Sonae Com Holding Company 0,0 7,5 178,9 (171,4) (77,1) (94,3) Total Consolidated Net Debt 526,3 205,1 188,8 542,6 113,1 429,5 13

14 APPENDIX III Operational Company Contributions to Consolidated Accounts 14

15 Optimus' contributions to consolidated results Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (53.478) Depreciation, Amortisations and Provisions EBIT (37.998) (825) (1.907) (4.158) (6.065) (2.037) (8.102) Net Results after minorities (18.538) (8.175) (2.237) (2.005) (4.242) (2.630) (6.872) CAPEX (excluding Capitalised Costs) Novis' contributions to consolidated results Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA (2.597) (31.009) (9.889) (10.019) (19.908) (10.144) (30.052) Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral (2.597) (40.841) (11.065) (10.773) (21.838) (11.062) (32.900) Depreciation, Amortisations and Provisions EBIT (4.821) (49.095) (16.871) (19.248) (36.119) (20.412) (56.531) Net Results after minorities (4.607) (28.348) (9.639) (11.901) (21.540) (11.674) (33.214) CAPEX (excluding Capitalised Costs Matrix' contributions to consolidated results * Q01 2Q01 1H01 3Q01 YTD Turnover Service Revenues EBITDA 0 (3.299) (4.492) (3.561) (8.053) (3.319) (11.372) Capitalised and Deferred Costs Deferred Costs (SACs) Capitalised Costs Deferred Costs written back EBITDA eliminating SAC deferral 0 (3.299) (4.885) (3.407) (8.292) (3.365) (11.657) Depreciation, Amortisations and Provisions EBIT 0 (5.155) (5.158) (5.502) (10.660) (4.439) (15.099) Net Results after minorities 0 (3.207) (3.228) (3.026) (6.254) (2.809) (9.063) CAPEX (excluding Capitalised Costs) * Matrix includes, for 2001, Sonae Matrix SGPS, Clix, Público and Público.pt. 15

16 APPENDIX IV Key Operating Statistics 16

17 KEY OPERATIONAL HIGHLIGHTS - SONAE COM Optimus Q01 2Q01 1H01 3Q01 Subscribers (EoP) thousands Subscribers Net additions thousands % pre-paid subscribers (EoP) 83,2% 81,5% 82,0% 81,9% 81,1% ARPU euro 30,7 32,1 27,4 28,2 27,8 29,4 MoU (minutes of use) Revenue per minute (ARPU/MoU) euro 0,23 0,25 0,24 0,23 0,23 0,24 CCPU (Cash Cost / sub / month) euro 41,1 30,4 24,8 26,9 25,8 27,2 Data as % of Service Revenues (AoP) 1,0% 3,1% 8,0% 7,5% 7,7% 6,5% Data as % of Customer Revenues (AoP) 1,0% 5,3% 10,4% 10,3% 10,3% 9,8% # SMS sent / month / user - 12,2 32,2 30,4 31,3 25,7 Total # SMS / month / user - 17,6 44,9 43,3 44,2 35,3 Novis Q01 2Q01 1H01 3Q01 Total Active Customers Indirect Access (EoP) Residential SOHO SME Corporate Customers with pre-selection activated (EoP) Total Customers Direct Access (EoP) Fixed Wireless Access (FWA) Excluding FWA clients Total Direct Access Installed (EoP) Fixed Wireless Access (FWA) Excluding FWA clients FWA (EoP) - - # of base stations installed # of base stations in operation FWA territory coverage (sqkm) Fibre Backbone kms (EoP) - Extension Fibre Pairs installed # points of presence MAN kms (Lisbon + Porto) (EoP) - Fibre Cable Installed (route kms) Fibre Pairs installed Microwave links Traffic data (millions of minutes) IT / Outsourcing activities (EoP) - PC's under management Systems / servers under management o.w. Housed / hosted at Novis

18 Matrix Q01 2Q01 1H01 3Q01 Clix Active dial-up users (last 30 days) (EoP) Registered customers (EoP) Page-views / month (EoP) millions ,9 Total minutes connection time thousands (quarter) Advertising revenues (k euros) 17,5 1006, Unique visitors - homepage (EoP) Access Revenues (individual accounts) k euros Publico.pt Page-views / month (EoP) millions 5,5 11,5 12, ,3 Unique visitors (EoP) homepage Advertising revenues k euros - 178, Content Revenues k euros - 367, Miau.pt Page-views / month (EoP) millions - - 3,9 3,3 3,7 Unique visitors (EoP) Advertising Revenues k euros Subscribers (EoP) Gross Transaction Value k euros Listed Items (EoP) Publico Average paid circulation Market share of readership 16,3% 15,4% 15,0% 14,7% 14,8% n.a. Market share of publicity 17,3% 18,5% 17,6% 20,3% 19,1% 19,3%* Gross advertising reven. (individual acc.) Net advertising revenues (individual acc.) Exit.online.pt Page-views /month (EoP) millions 0,94 1,44 0,828 Total Gross Revenues (k euros) Gross Booking (k euros) Registered users thousands (EoP) 31 57,1 79 Nº of Bookings Other vortals ** Page-views /month (EoP) millions 2,7 2,7 1,6 Total Revenues (k euros) 114, ,2 Unique visitors (EoP) Registered users (EoP) * July and August / ** Includes Level.pt, Casaglobal.pt, Crediglobal.pt and Bikini.pt Numbers corrected from last quarter 18

19 C o n s o l i d a t e d b a l a n c e s h e e t a s a t 3 0 S e p t e m b e r a n d (Amounts expressed in Euro) 30 September September 2000 ASSETS A DP NA NA NON-CURRENT ASSETS Intangible Assets Start-up costs Research and development costs Brands and patents Work in progress Goodwill arising on consolidation Tangible Assets Land Buildings Plant and machinery Vehicles Tools Fixtures and fittings Other tangible assets Work in progress Investments Shares held in group companies Loans to group companies Shares held in associated companies Loans to associated companies Loans to other companies Securities and other financial investments Advances for financial investments CURRENT ASSETS Inventories Raw materials, secondary and consumables Goods for resale Advances for purchases Debtors - Short Term Trade debtors Doubtful debtors Group companies Other shareholders Advances to trade creditors State and other public bodies Other debtors Short Term Investments Other treasury investments Cash Cash at Bank Cash in hand Accrued Income and Prepayments Accrued income Prepayments Total depreciation Total provisions Total Assets

20 The Chief Accountant The Board of Directors