Brasil Telecom posts 3Q loss

24 Oct 2005

Fixed and mobile operator Brasil Telecom has posted a loss of BRL25.1 million (USD11.1 million) in the third quarter of 2005, compared to a BRL85.1 million profit a year earlier. The operator said that the results were well below expectations, with investment bank CSFB describing them as ‘disappointing’. Brasil Telecom’s operating costs rose 33% year-on-year to BRL1.83 billion, and it was also hit by a series of one-off provisions which ate into its revenues, which actually grew by 9.1% to BRL257 million. Local, long-distance and fixed-to-mobile minutes declined by between 5% and 6% during the quarter. The loss is the first in seven quarters for the operator.

Brazil, Brasil Telecom (BrT)