Drop in profit for Brasil Telecom; up for Embratel

20 Apr 2005

Brasil Telecom Participacoes, the holding company for fixed line and mobile operator Brasil Telecom, has reported a 38% fall in net profit to BRL45.1 million (USD17.6 million) for the first quarter, claiming that it had to spend more money to attract new wireless customers. The figure compares with BRL74.3 million at the same time in 2004. Sales, on the other hand, rose by 18% to BRL2.45 billion. The company claimed over a million subscribers to its wireless network at the end of March, up from 622,300 at the end of 2004.

Meanwhile long-distance telco Embratel has reported its first profit in a year for the first quarter, with net income rising to BRL43.3 million (USD16.6 million), up from BRL4.6 million a year ago. Revenue for the quarter was stable at BRL1.9 billion, while general and administrative costs fell by BRL45.3 million to BRL192 million.

Brazil, Brasil Telecom (BrT)