Net reports net profits of USD11.4 million in Q3

25 Oct 2006

Brazilian cable TV provider Net Serviços has reported net income of BRL24.6 million (USD11.4 million) for the three months to 30 September 2006, reversing a loss of BRL20.6 million in the same period of 2005. Net, which is backed by local media group Globo and long-distance telco Embratel, posted net revenues of BRL501 million in the period under review, up 22.1% year-on-year. It reported stable and ‘consistent’ growth in its pay-TV and broadband subscriber bases, increasing the former by 15.5% to 1.72 million and boosting the number of high speed internet subscribers on its books to 630,000, up 109% in twelve months.

Net, which is looking to acquire a controlling stake in smaller rival Vivax, said its EBITDA margin remained stable at around 26%, while consolidated EBITDA reached BRL130 million, up from BRL107 million previously. It has increased its capital expenditure for the next twelve months by BRL300 million, increasing net debt to over BRL1 billion. Third quarter investments totalled BRL93.7 million.