CANTV 2Q profit falls to USD44.5 million

27 Jul 2006

Venezuelan telco CANTV saw its net profit fall 16% year-on-year to USD44.5 million in the second quarter of 2006, compared to USD53 million in the same period of 2005, on operating revenues which rose 34% to USD740.5 million. It attributed the more modest earnings to higher taxes and quarterly operating costs, which climbed 34.9% to USD702 million. 2Q EBIDTA was USD141.9 million, up from USD126.1 million a year before. The company said that most of its growth came from its broadband and cellular businesses, with revenue from high speed internet services totaling USD94.3 million, up 35.7% year-on-year, and mobile turnover at its Movilnet subsidiary increasing by 69%. The former fixed line monopoly continued to invest in the expansion of its CDMA-based mobile network and broadband access lines in early 2006, amongst other technology upgrades; CAPEX for the first six months of the year was USD181.7 million.

Venezuela, CANTV