Brasil Telecom predicts rising profits in 2007

14 Mar 2007

Brazilian fixed and mobile operator Brasil Telecom Participacoes (Brasil Telecom) is predicting a strong rise in profit margins in 2007 as it signs up more mobile and broadband internet customers. The company forecasts that its EBITDA margin will increase to 35.5% from 33.9% in 2006. Brasil Telecom ended last year with 3.4 million mobile users and 8.14 million fixed telephony customers, but admits it is looking to wireless and broadband to offset declining revenues from its core voice business. In 2007 it expects to increase its mobile base by between 30% and 35% and grow its high speed internet business by 20% to 25%. By contrast, the number of mainlines in service is expected to dip by up to 3.5%, following a 5.5% decline in fiscal 2006. Total revenues in the coming year are forecast to increase by around 2.2% while EBITDA is expected to ‘slightly exceed’ estimates of BRL3.74 billion (USD1.79 billion). CAPEX in 2007 will total more than BRL1.65 billion.

Brazil, Brasil Telecom (BrT)