TCP reduces quarterly losses by nearly 75% and looks forward to a return to the black

30 Oct 2003

Mobile holding company Telesp Celular Participações (TCP) cut its third quarter net loss by nearly three-quarters and predicted a return to profitability in the short term. In the three months to 30 September 2003 revenues rose 4% year-on-year to BRL1.7 billion, as costs were reduced by 4% to BRL1 billion. EBITDA was BRL709 million and net losses were BRL69.1 million (USD24 million), down from BRL219 million in the third quarter of 2002. Driving growth was the company’s data business, though TCP’s wireless market share remained stable at around 58%, with 11.7 million lines in service. Company officials said that TCP could return to the black sooner rather than later as its subsidiary Global Telecom, which operates in the states of Paraná and Santa Catarina and has been the primary drag on company resources, continues its recovery. TCP and its subsidiaries – Telesp Celular and TCO, alongside Global – are part of the Vivo brand, a joint venture between Portugal Telecom and Telefónica Móviles of Spain.