Telesp Celular net losses reach USD424 million in 2005

27 Feb 2006

Brazilian mobile operator Telesp Celular reported a net loss of BRL909 million (USD424 million) in the twelve months to 31 December 2005, up from a loss of BRL490 million in 2004. Telesp Celular, which is the largest of the five units that make up the Vivo group, posted net operating revenue of BRL7.47 billion compared to BRL7.34 billion in 2004, and posted increased losses in operating revenues of BRL5.43 billion, from BRL4.75 billion previously. EBITDA stood at BRL2.04 billion, down from BRL2.59 billion and the EBITDA margin fell sharply from 35.3% to 27.3%. The decline in EBITDA margins was in part the result of higher than expected bad debt provisions.

Telesp Celular reported a 14.6% rise in subscriber numbers in 2005 to 20.2 million, up from 17.6 million, with 830,000 clients added in the fourth quarter 2005 alone. It also retained its leading market position with a 45.2% share at year-end, although the strong challenge from rivals TIM, Claro and Oi has whittled away at the 51.4% share Telesp had at 31 December 2004.

Brazil, Telesp Celular