Vivo losses widen

24 Jul 2006

Vivo has revealed that it made a net loss of BRL493 million (USD225 million) for the second quarter of 2006, almost double that of the corresponding period last year. Losses for the first six months of 2006 were more than three times as large as those in the first half of 2005. Total net revenue for the second quarter was BRL2.6billion, down 9.8% year-on-year. Vivo attributed the slump in revenue to an ongoing reduction of incoming traffic caused by the transition from fixed-mobile traffic to mobile-mobile traffic, the greater variety of plans available and a greater use of free minutes.