SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of November 2007

Commission File Number 1-13758

PORTUGAL TELECOM, SGPS, S.A.

(Exact name of registrant as specified in its charter)

Av. Fontes Pereira de Melo, 40
1069 - 300 Lisboa, Portugal

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

First Nine Months 2007

Earnings Release

Lisbon, Portugal, 14 November 2007

Portugal Telecom announced today its results for the first nine months ended 30 September 2007.

In 9M07, consolidated operating revenues amounted to Euro 4,531 million, an increase of 5.7% y.o.y. EBITDA increased by 11.8% y.o.y to Euro 1,726 million, equivalent to a margin of 38.1%, and income from operations increased by 29.2% y.o.y to Euro 910 million. Net income for the period amounted to Euro 670 million, an increase of 27.2% over the same period of last year. EBITDA minus Capex increased by 15.5% y.o.y to Euro 1,227 million. As at 30 September 2007, net debt amounted to Euro 4,332 million and after-tax unfunded post retirement benefit obligations totalled Euro 917 million.

PT’s financial results have been prepared in accordance with International Financial Reporting Standards (IFRS). Following the approval of the PT Multimedia spin-off at PT’s Annual Shareholders’ Meeting on 27 April 2007, PT Multimedia was considered as a discontinued operation for reporting purposes. For a detailed discussion of PT Multimedia’s results, please refer to PTM’s First Nine Months 2007 Earnings Release.

(1) EBITDA = income from operations + depreciation and amortisation. (2) Income from operations = income before financials and income taxes + curtailment costs + losses (gains) on disposal of fixed assets + net other costs (gains). (3) EBITDA margin = EBITDA / operating revenues. (4) Net debt divided by EBITDA. (5) Net debt plus after-tax unfunded post retirement benefit obligations divided by EBITDA.

2

Financial Review

Income Statement

Consolidated operating revenues increased by 5.7% y.o.y in 9M07 (+6.5% y.o.y in 3Q07), driven by growth at Vivo, TMN and Other Businesses. Vivo operating revenues increased by 13.8% y.o.y in Euros and by 12.8% y.o.y in Reais in 9M07, on the back of continued growth in customers and ARPU, as well as the impact of the change in interconnection regime (July 2006). TMN operating revenues increased by 1.3% y.o.y (+1.6% y.o.y in 3Q07), whilst billing revenues increased by 2.1% y.o.y (+2.4% y.o.y in 3Q07), underpinned by continued customer growth, particularly in postpaid and wireless broadband. Excluding the negative impact of mobile termination rate (MTR) cuts, operating revenues would have increased by 2.6% y.o.y in 9M07. Wireline operating revenues decreased by 5.7% y.o.y in 9M07, as a result of the impact of continued line loss and pricing pressure on retail revenues, notwithstanding the improvement in wholesale and data & corporate revenues. Other revenues increased to Euro 137 million mainly as a result of a higher contribution of MTC (Euro 77 million), which was only consolidated as from September 2006, and the increase in revenues of other fully consolidated subsidiaries.

(1) Considering a Euro/Real average exchange rate of 2.7167 in 9M06 and 2.6921 in 9M07. (2) EBITDA = income from operations + depreciation and amortisation. (3) Income from operations = income before financials and income taxes + curtailment costs + losses (gains) on disposal of fixed assets + net other costs (gains).

3

EBITDA increased by 11.8% y.o.y in 9M07 to Euro 1,726 million, with the EBITDA margin improving by 2.1pp y.o.y to 38.1%. Adjusting for exceptional items (Table 3) related to prior years service gains at Wireline and provisions at Vivo (2Q06), EBITDA would have increased by 8.3% y.o.y, which results in a margin expansion of 0.9pp to 37.3%. The improvement in EBITDA in the period was driven primarily by growth in the mobile divisions, Vivo and TMN, and the increase in Other Businesses. Vivo EBITDA increased by 28.3% y.o.y (27.1% y.o.y in local currency), on the back of the strong improvement in underlying EBITDA (+16.8% in local currency) and the impact of a one-off provision recorded in 9M06 (Euro 30 million). As for TMN, continued top line growth, against a backdrop of strong commercial activity (190 thousand net additions in 3Q07), combined with strict cost control, resulted in an EBITDA growth of 3.3% y.o.y (+4.5% y.o.y in 3Q07). Wireline EBITDA increased by 0.7% y.o.y, mainly as a result of the increase in prior years service gains in 2007, resulting from the reduction in post retirement benefits. Excluding this impact, underlying EBITDA would have decreased by 2.4% y.o.y, with the 1.6pp improvement in underlying EBITDA margin resulting from the continued reduction in personnel-related and other operating costs. Other EBITDA increased to Euro 60 million in 9M07, mainly as a result of the increase in the contribution of MTC (Euro 40 million), which was only consolidated as from September 2006, and the increase in EBITDA of other fully consolidated subsidiaries.

(1) Considering a Euro/Real average exchange rate of 2.7167 in 9M06 and 2.6921 in 9M07. (2) EBITDA = income from operations + depreciation and amortisation.

The impact in 9M07 of the reduction in mobile termination rates throughout 2006 was as follows:

Curtailment costs amounted to Euro 142 million in 9M07, as compared to Euro 96 million in the previous year. Curtailment costs in 9M07 were related to the reduction in headcount of 482 employees.

Net interest expenses decreased by 15.5% y.o.y to Euro 146 million in 9M07, mainly as a result of the reduction in the average cost of debt in Portugal and Brazil, as well as the decrease in Vivo’s average net debt in the period, and not withstanding the increase in PT’s average net debt in the period.

4

Excluding Brazil and the interest cost associated with the PTM equity swap (settled in 2Q07), PT’s average cost of debt was 3.5% in 9M07, as compared to 3.8% in the same period of last year.

Equity in earnings of affiliates increased to Euro 95 million in 9M07, as compared to Euro 86 million in 9M06, primarily as a result of the increase in PT’s share in the earnings of Unitel (Euro 65 million in 9M07 vs. Euro 60 million in 9M06), UOL (Euro 9 million in 9M07 vs. Euro 5 million in 9M06) and CTM (Euro 13 million in 9M07 vs. Euro 11 million in 9M06).

Net other financial gains, which include net foreign currency gains, net gains on financial assets and net other financial expenses, amounted to Euro 220 million in 9M07, as compared to losses of Euro 39 million in 9M06. In 9M07, net gains on financial assets included gains related to: (1) the sale of 22% of Africatel (Euro 110 million), the holding company that aggregates all of PT’s interests in Africa excluding Médi Télécom; (2) the equity swap contracts on PTM shares (Euro 77 million in 9M07 vs. Euro 6 million in 9M06); (3) the disposal of the investment in the shares of Banco Espírito Santo (Euro 36 million), and (4) the cash settlement of equity swaps on own shares (Euro 31 million). Net other financial expenses, which include mainly banking services, financial discounts and other financing costs, amounted to Euro 26 million in 9M07, which compares with Euro 37 million in 9M06. This reduction is mainly related to the financial taxes paid by Vivo in 9M06 in connection with its debt restructuring last year.

Provision for income taxes amounted to Euro 211 million in 9M07, as compared to a gain of Euro 7 million in 9M06. The change in this item is primarily explained by the Euro 53 million tax credit booked in 1Q06, in connection with the liquidation of a holding company, and by the Euro 142 million gain booked in 2Q06, in connection with the reduction of deferred tax liabilities resulting from the voluntary taxation of certain capital gains. Adjusting for these one-off effects, the provision for income taxes in 9M06 would have amounted to Euro 188 million, with the adjusted effective tax rate falling from 41% in 9M06 to 23% in 9M07, mainly as a result of: (1) the reduction in the nominal tax rate in Portugal from 27.5% in 2006 to 26.5% in 2007; (2) the decrease in allowances for deferred taxes on tax losses generated by Vivo, following the corporate restructuring completed at the end of 2006, and (3) the booking of the non-taxable capital gains related to the disposals of 22% of Africatel and the investment in the shares of BES.

Income from discontinued operations includes the earnings of PT Multimedia before minority interests, as a result of the spin-off of this division. In 9M07, this item included costs related to the spin-off process amounting to Euro 18 million (Euro 13 million, net of tax) in connection with employee, organisational and IT restructuring costs.

Income attributable to minority interests increased to Euro 66 million in 9M07 from losses of Euro 0.1 million in the previous year, mainly as a result of: (1) the increase in income attributable to Vivo minority interests (income of Euro 10 million in 9M07 vs. loss of Euro 38 million in 9M06), and (2) the income attributable to MTC minority interests (Euro 17 million in 9M07 vs. Euro 2 million in 9M06), which was consolidated as from September 2006.

5

Net income amounted to Euro 670 million in 9M07, an increase of 27.2% y.o.y, primarily as a result of the increase in EBITDA and higher net financial gains, more than offsetting the increase in curtailment costs in 9M07 and lower provision for income taxes in 9M06. Adjusting for the various impacts described above, net income excluding exceptional items would have increased by 34.3% y.o.y in 9M07 to Euro 535 million (see table 5).

Capex

Capex increased by 3.6% y.o.y to Euro 498 million in 9M07, with the decrease in Vivo capex being more than offset by the capex increase in the remaining divisions. Wireline capex was directed towards network upgrades to provide greater bandwidth, in part related to IPTV services launched in June 2007 and client-related capex, while at TMN capex was directed towards the build up of network capacity and 3G/3.5G coverage. TMN capex also included a contribution of Euro 8 million to a fund for the development of the information society, under the terms of the UMTS licence. At Vivo, capex was directed towards the GSM/EDGE overlay and network coverage and capacity. Other capex includes capex related to consolidated businesses not included in the main segments and support companies. In 9M07, other capex increased to Euro 47 million, as compared to Euro 30 million in 9M06, mainly as a result of the increase in the contribution of MTC (Euro 21 million), which was consolidated as from September 2006.

(1) Considering a Euro/Real average exchange rate of 2.7167 in 9M06 and 2.6921 in 9M07.

6

Cash Flow

Operating cash flow amounted to Euro 1,025 million in 9M07, a decrease of 7.4% y.o.y. The reduction in operating cash flow is explained by the increase in working capital investment in 9M07, primarily as a result of higher commercial activity at TMN and Vivo, higher management fees and the consolidation of MTC as from September 2006.

(1) Includes dividends received from PTM (Euro 54 million in 9M07 vs. Euro 58 million in 9M06) and Unitel (Euro 27 million in 9M07 vs. Euro 2 million in 9M06).

Free cash flow increased to Euro 915 million in 9M07 from Euro 450 million in 9M06, primarily as a result of: (1) the increase in net disposal of financial investments; (2) lower interest paid, and (3) lower contributions and payments related to post retirement benefits, as a result of the Euro 83 million reimbursement made in 9M07 by PT Prestações, the fund created to cover healthcare responsibilities, on account of healthcare expenses paid by PT in 2007 and in previous years. These effects were partially offset by higher income taxes paid, which increased since PT’s tax losses carried forward were fully used in 2006.

Net disposals of financial investments in 9M07 included primarily the disposal of the investment in the shares of BES (Euro 110 million), the cash settlement of the PTM equity swap (Euro 94 million) and the proceeds from the disposal of a 22% stake in Africatel (Euro 117 million). In 9M06, net acquisitions of financial investments included mainly the acquisition of 34% stake in MTC (Euro 108 million) and PT’s share in the capital increase of BES (Euro 19 million).

The reduction in interest paid from Euro 299 million in 9M06 to Euro 214 million in 9M07 is explained mainly by the fact that PT paid in 9M06 the last annual interest installment (Euro 52 million) of the Eurobond repaid in 2006 and by the decrease in Vivo’s interest payments following the debt restructuring undertaken in 2006.

Consolidated Net Debt

Consolidated net debt amounted to Euro 4,332 million as at 30 September 2007, as compared to Euro 3,757 million as at 31 December 2006. The increase in net debt over the period is explained primarily by the share buyback, currently under execution, and the dividends paid in May 2007.

As at 30 September 2007, 82.2% of total debt was medium and long-term, and 69.5% of total debt was set in fixed rates. As at 30 September 2007, 85.9% of total debt was denominated in Euros, 0.2% in US Dollars and 13.6% in Brazilian Reais. The 50% share of Vivo’s net debt, proportionally consolidated by PT,

7

amounted to Euro 438 million as at 30 September 2007. At the end of September 2007, approximately 96% of Vivo’s net debt was either Real-denominated or hedged into Reais.

(1) In 9M07, this item included dividends paid by PT (Euro 517 million) and its subsidiaries. (2) In 9M07, PT contracted equity swaps over 103 million own shares under the share buyback programme currently being executed. (3) In 9M06, this item included Euro 27 million related to the price reset of the equity swap contracts over PTM shares.

The total undrawn amount of PT’s commercial paper lines and standby facilities stood at Euro 1,340 million as at 30 September 2007. The amount of available cash from the domestic operations plus the undrawn amount of PT’s commercial paper lines and standby facilities totalled Euro 2,336 million at the end of September 2007.

In 9M07, PT’s average cost of debt and maturity was 4.9% and 6.9 years respectively, including loans obtained in Brazil and denominated in Reais. Excluding Brazil and the interest cost associated with the PTM equity swap (settled in 2Q07), PT’s average cost of debt was 3.5% in 9M07. The debt maturity excluding Brazil was 7.0 years at the end of September 2007. In 9M07, the net debt to EBITDA ratio was 1.9 times and EBITDA cover was 11.8 times. Considering the after-tax unfunded post retirement obligations, the adjusted net debt to EBITDA ratio decreased to 2.3 times in 9M07 from 2.7 times in 9M06.

In July 2007, PT successfully issued a Euro 750 million exchangeable bond with a maturity of 7 years. The coupon was fixed at 4.125% and the exchange price at Euro 13.9859, which was adjusted to Euro 11.60 following the spin-off of PT’s interest in PT Multimedia.

Post Retirement Benefit Obligations

As at 30 September 2007, the projected benefit obligations (PBO) of PT’s post retirement benefits amounted to Euro 4,305 million. PT’s post-retirement benefit plans have been closed to new participants since 1994 for pensions and 2000 for healthcare.

Gross unfunded obligations decreased by Euro 407 million in 9M07 to Euro 1,247 million, as a result of the net actuarial gains booked in the period (Euro 322 million) and the Euro 117 million extraordinary contribution made in 9M07, notwithstanding the Euro 142 million curtailment charge. As part of the semi-annual actuarial study, the discount rates used to calculate the PBO were adjusted to reflect the evolution of

8

market yields. As such, the discount rate used for pensions and healthcare obligations was increased from 4.75% to 5.25% and the discount rate used for salaries from 4.25% to 4.75%. The after-tax unfunded obligations amounted to Euro 917 million at the end of September 2007.

In 1H07, PT recorded prior years service gains of Euro 42 million following the introduction of changes to the Social Security rules (DL 187/2007) and adjustments to the growth rate used to calculate pension complements introduced by PT. These prior years services gains included Euro 36 million related to vested rights (recorded directly in the income statement) and Euro 6 million related to unvested rights (deferred and amortised over the average working life of active employees). In addition, recent changes introduced by the Portuguese Government to the Social Security rules (Law 52/2007) are estimated to have a positive impact of approximately Euro 80-90 million on PT’s PBO, which will be recorded following the completion of the next actuarial study at the end 4Q07.

(1) In 9M07, the PRB cost recorded in the income statement amounted to a gain of Euro 8.4 million, including a gain of Euro 1.6 million related to the amortisation of prior years service gains on unvested rights. (2) In 9M07, this item included: (i) Euro 33 million of regular contributions; (ii) Euro 124 million of payments of salaries to pre-retired and suspended employees and other; (iii) Euro 5 million related to upfront payments of certain redundancies; (iv) Euro 65 million of net reimbursements related to healthcare benefits, and (v) Euro 117 million related to an extraordinary contribution to the pension funds.

As set out below, post retirement benefit costs were Euro 8 million negative (gain) in 9M07, mainly as a result of the prior years service gains of Euro 36 million recorded in the period. The decrease in service cost in 9M07 is explained primarily by the reduction in healthcare obligations that occurred at the end of 2006, while the Euro 18 million decrease in net interest cost is explained by the narrowing of the unfunded gap.

(1) In 9M07, this item includes Euro 36.2 million related to vested rights and Euro 1.6 million related to the amortisation of prior years service gains on unvested rights.

9

Shareholders’ Equity

(1) This item is primarily related to the changes in the Euro/Real exchange rate. (2) In 9M07, PT contracted equity swaps over 103 million own shares under the share buyback programme currently being executed. (3) In 9M07, this item includes Euro 36 million corresponding to the offset of the gain obtained on the disposal of the investment in the shares of Banco Espírito Santo recorded in the income statement in 2Q07. (4) This item includes primarily Euro 28 million related to price resets on existing equity swap contracts on own shares.

As at 30 September 2007, shareholders’ equity excluding minority interests amounted to Euro 1,794 million, a decrease of Euro 462 million in 9M07. Distributable reserves decreased by Euro 550 million to Euro 2,178 million at the end of September of 2007, with the impact of the share capital restructuring (Euro 440 million), as approved by shareholders on 27 April 2007, and the net income generated in 9M07 under Portuguese GAAP (Euro 577 million) being more than offset by the acquisition of treasury shares in 3Q07 (Euro 1,050 million) and the dividends paid in 2Q07 (Euro 517 million).

As at 13 November 2007, PT had a total of 123.7 million own shares, held through treasury stock and equity swap contracts, in the amount of Euro 1,265 million.

(1) In 3Q07, PT acquired 103 million own shares for a total amount of Euro 1,050 million, through the exercise of the physical settlement option of equity swaps contracted under the share buyback programme currently being executed.

Adjusting for the PTM spin-off, distributable reserves at the end of September 2007 would have amounted to Euro 1,807 million.

10

Consolidated Balance Sheet

As at 30 September 2007, the net exposure (assets minus liabilities) to Brazil amounted to R$ 7,534 million (Euro 2,884 million at the Euro/Real exchange rate of 30 September 2007). The assets denominated in Brazilian Reais in the balance sheet, as at 30 September 2007, amounted to Euro 5,209 million, equivalent to approximately 38% of total assets.

Following the approval of the PT Multimedia spin-off by PT shareholders at the AGM of 27 April 2007, PTM was considered as a discontinued operation for reporting purposes. The book value of PT Multimedia, under IFRS, in PT’s accounts (assets minus liabilities minus attributable minority interests) amounted to Euro 400 million as at 30 September 2007.

(1) Considering a Euro/Real exchange rate of 2.8118 at year-end 2006 and 2.6125 at the end of September 2007. (2) In 9M07, this item includes Euro 24 million related to prior years service gains on unvested rights not yet recognised.

11

Operating Review

Wireline

Wireline operating revenues decreased by 5.7% y.o.y in 3Q07 to Euro 484 million, with the reduction in retail revenues more than offsetting the increase in wholesale and data & corporate revenues in the quarter.