Brasil Telecom reverses losses, cuts investments

1 Feb 2007

Brazil’s third largest fixed line operator Brasil Telecom has posted a group net profit of BRL470 million (USD221 million) in 2006 compared to a loss of BRL29.6 million the previous year, the company said in a statement. Annual revenues from Telecom’s mobile division rose by 80.7% to BRL1.32 billion, driven by the addition of 1.16 million net new subscribers, bringing its total to 3.37 million at end-2006. The company claimed to have a 12.1% share of the GSM market at the end of December, a gain of 3.4 percentage points in the year. However, the cellular unit saw a BRL339 million loss in 2006 as operating costs rose by 7% year-on-year to BRL1.25 billion. The company’s data and broadband revenues reached BRL2.37 billion, up by 23% on 2005. Brasil Telecom invested BRL1.45 billion in 2006, down 26.6% compared to BRL1.98 billion in 2005.

Brazil, Brasil Telecom (BrT)