Pay-TV operator Net reports 35% fall in FY2006 earnings

5 Feb 2007

Brazilian pay-TV operator Net Serviços says its net profits fell by 35% in 2006, down to BRL82 million (USD39 million) from BRL126 million previously, and attributed the poor performance to tax issues and the incorporation of loss-making subsidiaries into the group. In a statement Net said revenues were up 22% at BRL1.94 billion, while EBITDA rose 14.5% to BRL515 million, from BRL450 million in 2005. The EBITDA margin dipped by one percentage point, however, to 27%.

At the end of 2006 Net Serviços said it had 1.81 million pay-TV subscribers, up 17.6% year-on-year, thanks to its focus on packaging different products that helped keep churn to a minimum, writes BNamericas. The operator reported 272,000 net additions during the year, with 82,000 coming in the fourth quarter. In addition, Net Serviços signed up 361,000 new broadband subscribers in 2006, lifting the total to 727,000, a 98% increase compared to 366,000 at end-2005. The company invested BRL488 million in 2006, compared with BRL189 million in 2005.