Telesp reports 14.4% rise in third quarter profits

14 Nov 2006

Brazilian fixed line operator Telesp said strong sales from broadband services and a reduction in its cost base helped push third quarter net profits to BRL812 million (USD375 million) for the three months to 30 September 2006, up 14.4% from BRL709 million in the corresponding period of 2005. The São Paulo-based unit, which is backed by Spain’s Telefónica, said gross revenues were down 1.7% however at BRL5.2 billion, from BRL5.29 billion previously. Sales from its data division, including broadband, leapt 64.5% to BRL568 million, but failed to offset declining revenues from traditional voice call telephony and interconnection. EBITDA was up 12.3% year-on-year at BRL1.94 billion, from BRL1.72 billion in Q3 2005.

At the end of the third quarter Telesp counted 12.3 million fixed lines in service, down 1.2% on a year ago, while the number of people signed up to its high speed internet access services climbed 36.5% year-on-year to 1.48 million.

Brazil, Telefonica Brasil (Vivo)