Brasil Telecom reports strong rises in 3Q EBITDA, net revenues

1 Nov 2006

Brasil Telecom Participaçoes (Brasil Telecom) has released its third quarter financials for the three months to 30 September, reporting EBITDA of BRL907.9 million (USD424.6 million), up 11.6% quarter-on-quarter, and a consolidated EBITDA margin of 34.5%. For the first nine months of the year EBITDA reached BRL2.55 billion, with an EBITDA margin of 33.7%, which the company attributes to solid revenue growth and strong gains from its data and mobile operations. Brasil Telecom posted net revenues of BRL2.63 billion in the third quarter, up 2% on the corresponding period of 2005, and 7.2% higher than 2Q 2006. Third quarter net income was BRL64 million.

The operator had 1.252 million broadband subscribers at the end of September, up 40.4% year-on-year, with ADSL accesses now accounting for 14.5% of its total lines in service. Data communications and other services revenue totalled BRL616.1 million in 3Q 2006, a 23.6% increase in comparison to 3Q 2005. The group’s mobile arm Brasil Telecom Mobile had 3.051 million subscribers by the end of September, giving it a market share of 11.4% in its area of operations. Gross revenues from mobile services reached BRL309.9 million, up 62.3% and 174.6% on 2Q 2006 and 3Q 2005 respectively.

Brazil, Brasil Telecom (BrT)