Brazilian mobile operator Telemig Celular Participações (Telemig) posted net income of BRL35.3 million (USD16.2 million) in the three months to 30 September 2006, down 40.8% from BRL59.6 million in the corresponding period of 2005, according to a statement from the company. Telemig, which offers mobiles services in the wealthy Minas Gerais state, reported gross revenues of BRL467 million in the period under review, up from BRL402 million a year ago. EBITDA fell by 26.2% from BRL124 million to BRL91.2 million, The EBITDA margin was 32%, down from 44.9% in 3Q 2005.
In the three-month period Telemig reported reduced net additions as a result of stiffer competition from Claro, a unit of América Móvil, ending the quarter with 804,911 contract customers, compared to 800,041 a year ago. Pre-paid users rose by 400,000 to 2.6 million, giving Telemig a market share of 33%, compared to 39% a year ago. Telemig is seen by many as a possible acquisition target, with likely buyers thought to include América Móvil, Vivo and fixed line operator Telemar.