TNE losses double as Oi launch costs mount

1 Aug 2003

Tele Norte Leste Participaçoes (TNE), the holding company controlling Brazil’s largest fixed line telco Telemar and PCS mobile operator Oi, has reported a widening in its net losses in the second quarter, mainly due to an increase in operating expenses. TNE’s net loss for the three months to the end of June 2003 was BRL166 million, more than double the BRL76 million loss it posted for the corresponding period last year. BRL156 million was spent on handset subsidies used to boost the take-up of Oi, launched in June 2002. The cellco reported a net loss of BRL348 million for the period, steady with the first three months of the year.