Telemar beats quarterly profits forecast

10 Mar 2006

Brazilian telco Tele Norte Leste Participacoes reported stronger-than-expected quarterly net income for the three months to 31 December 2005, driven by strong growth within its mobile arm and tax credits. The company owns wireless operator Oi and Brazil’s largest fixed line operator Telemar. Consolidated net income for the fourth quarter rose to BRL416.4 million (USD191 million), from BRL293.1 million a year ago, beating consensus average forecasts of BRL279.5 million. EBITDA fell to BRL1.68 billion, from BRL1.72 billion. Oi posted a net profit of BRL111.2 million in the fourth quarter, reversing a loss of BRL103 million in Q4 2004.

Brazil, Oi