Operator: Greetings, and welcome to the Portugal Telecom 2013 First Quarter Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Zeinal Bava, CEO for Portugal Telecom. Thank you, Mr. Bava. You may begin.
Zeinal Bava - CEO: Good afternoon, ladies and gentlemen. Thank you very much for being on this call. I'm here with my CFO, Luis Pacheco de Melo; our IR Director, Nuno Vieira; and the finance team as well.
We are going to take you through the first quarter numbers. As you will have seen this morning our consolidated operating revenues amounted to EUR1,553 million. Consolidated EBITDA stood at EUR526 million. Our margins reached 33.9%. It was underpinned by the solid margin of the Portuguese businesses which posted a margin of 42.8%. Oi's EBITDA margin also improved and it reached 30.5% in the first quarter. As you know Oi has already their results earlier in April.
In the first quarter 2013, our fully and proportionally consolidated international assets represented 58.7% and 52% of PT's consolidated revenues and EBITDA. This is very much in line with our strategy to diversify our international presence, and as a result it's very good to see that about almost (60%) of our business is now done outside Portugal.
In the first quarter of 2013, our CapEx amounted to EUR287 million. This is equivalent to 18.5% of revenues. The CapEx from Portuguese telecom businesses stood at EUR99 million. It was down 13.7%, and this is very much in line with the fact that most of the modernization investment in Portugal telecom is pretty much done and completed. Overall, our CapEx to sales was 15.6%.
In the first quarter of 2013, EBITDA minus CapEx reached EUR240 million, while EBITDA minus CapEx of the Portuguese telecom businesses stood at about to EUR172 million.
My CFO will take you through the operating cash flow. Allow me also to say just a one final comment on the financials regarding our net debt.
Our net debt, adjusted for news tax credit amounted to 7.9 billion and excluding the proportional consolidation of Oi and Contax it amounted to 4.6 billion. My CFO will take you through these numbers in a lot more detail later in the call. It is worth mentioning however that the cost of net debt excluding the proportional consolidation of Oi reached 5.3% and the cost of gross debt stood at 4.9% with an average maturity of 6.3 years which takes already into account the recent bond issue which we did. I think these are very competitive terms and this shows how robust our funding position is and Portugal Telecom is fully funded until the end of 2017, and we can therefore continue to look at our business always with the mindset of medium to long-term.
I will now take you through the presentation which we put out today, discussing some of the business trends before I hand you over to my CFO. So, Page 3, essentially, we have another quarter of very solid customer growth. Total number of customers, Portugal Telecom today, 101 million. It was up, 6.1% compared to the same period last year. We saw growth in Portugal, 3.2%, in Brazil 5.5% and in other international as well, across all our businesses that are strategic, Portugal Telecom in this quarter posted strong customer growth.