Embratel reports 41% rise in 2Q profit

27 Jul 2006

Brazilian domestic long-distance operator Embratel Participacoes posted a 41% rise in second-quarter profit, aided by an increase in sales of data transmission services and a decline in bad debt provisions. In the three months to 30 June 2006 Embratel said net income rose to BRL131.5 million (USD59.8 million), up from BRL94 million for the corresponding period of 2005, and BRL128 million in Q1 2006. Net revenues climbed from BRL1.86 billion to BRL2.04 billion in Q2 2005, thanks to a 30% increase in revenues from data transfer services to BRL570 million. Turnover from traditional long-distance services dipped 1.3% to BRL1.17 billion. EBITDA surged by 27% to BRL513 million and the operator’s bad debt provision fell 7.2% to BRL105.3 million.