Portugal Telecom announced a net income of EUR129.7 million for the quarter to 31 March 2011, up 29.3 percent year-on-year, on operating revenue of EUR871.1 million, down 3.9 percent. Some 35 percent if its revenue comes from its domestic mobile operation, TMN, although sales of EUR303 million at this unit were down 12.4 percent. It attributed the mobile decline to lower customer revenue as a result of increased take-up of low-cost prepaid plans and reduced contract demand; lower interconnection rates, and a decrease in equipment sales.