UOL profits down 37% in Q2

10 Aug 2006

Brazilian internet service provider (ISP) Universo Online (UOL) has reported profits of BRL20.5 million (USD9.41 million) in the three months to 30 June 2006, down 37% year-on-year from BRL32.4 million in 2005. Net revenues rose by 4% to BRL114 million, but service costs were also up 21% at BRL57.7 million and gross profits were down 8% at BRL56.5 million. EBITDA in the period under review stood at BRL24.6 million, down 32% year-on-year, while operating profits dipped 21% to BRL32.5 million. UOL reported having 1.5 million subscribers in June 2006, up 6% from a year before, with the number of broadband subscribers alone jumping 37% to 697,000. Gross revenue from subscriptions totalled BRL120 million, up 7% y-o-y. UOL invested BRL25.4 million in the three months to June, compared with BRL2.8 million a year earlier.