Brasil Telecom: third quarter profit dip after mobile investment

4 Nov 2004

Brazil’s third largest telco Brasil Telecom has revealed that net income in the three months to 30 September fell to BRL85.2 million (USD30.1 million) compared with BRL116.6 million in the corresponding period of 2003, representing a 27% drop in profit. The probable cause was the BRL364.3 million the company invested in a new wireless network, launched last month and expected to cost a further BRL625.7 million by the end of 2004. Brasil Telecom’s announcement went on to say that sales in the third quarter rose by 15% to BRL2.36 billion.

Brazil, Brasil Telecom (BrT)