Embratel reports 39% drop in FY profits

13 Feb 2007

Brazilian long-distance operator Embratel Participações says net income in 2006 was BRL106 million (USD50 million), down 39.3% from BRL174 million a year earlier. EBITDA dropped 31.9% from BRL1.69 billion to BRL1.16 billion and the EBITDA margin slipped by more than eight percentage points to 14%. Net revenues, however, were up 8.7% to BRL8.22 billion from BRL7.57 billion. Embratel, a unit of Mexico’s Telmex, was impacted by provisions of BRL507 million related to state value added tax and income tax, the majority of which is non-recurring, writes BNamericas.

Brazil, Telefonos de Mexico (Telmex)