Oi boosts Telemar's second quarter results

28 Jul 2006

Tele Norte Leste Participações (TNL), also known as Telemar, announced yesterday that second quarter net income rose 39% year-on-year to BRL282.6 million (USD129 million), helped mainly by a rapidly growing subscriber base at wireless subsidiary TNL PCS (Oi). Telemar Financial Director Jose Luis Salazar said on a conference call that Oi’s client base growth of 16.3% in the first half of this year far exceeded the market’s average growth of 6.4%. Salazar said he expected Telemar’s mobile arm to finish this year with between 12.5 million and 13 million clients, up from twelve million currently. Overall net revenue for the company slipped 1.5% to BRL4.1 billion as declining sales from fixed line operations took their toll. There was better news from Telemar’s broadband unit, Velox, which increased its subscriber base by 20% in the first six months of 2006, and achieved a 43% rise in revenue during the period, up to BRL423 million.

Brazil, Oi, Tele Norte Leste Participaçoes