BrT reports rising revenues and EBITDA in Q1

26 Apr 2007

Brazilian telecoms operator Brasil Telecom Participacoes (BrT) said first-quarter EBITDA was BRL952 million (USD468.6 million) in the three months to 31 March 2007, a rise of 0.5% and 15.4% on 4Q2006 and 1Q2006, respectively. The company reported that its consolidated EBITDA margin reached 35.4%, while consolidated net revenues stood at BRL2.69 billion, up 8.6% year-on-year. Net income in the first quarter of this year was BRL169.9 million, a five-fold increase from BRL33.5 million in the same period a year earlier, driven by higher revenue from mobile and data transmission services. After only 30 months of operations, EBITDA for the group’s mobile arm was positive at BRL4.4 million in 1Q2007, corresponding to an EBITDA margin of 1.1% and reaching an earlier goal set by BrT.

BrT GSM reported 3.638 million mobile subscribers at the end of the first quarter, thanks to the net addition of 261,300 users in the three-month period. Its market share in Region II was 12.9% by the start of April this year, it said. Consolidated gross revenues from mobile operations reached BRL412.5 million in 1Q2007, a year-on-year increase of 81.3%.

Brasil Telecom, which runs the country’s third largest fixed line operator, said it added 65,800 ADSL accesses in Q1, to boost the group total to 1.383 million. Its internet division, Internet Group, reported 1.16 million broadband customers by 31 March, up 8.1% from 1.07 million in the same quarter of 2006. Gross revenues from data services were BRL660.1 million in Q12007, up 22.6% y-o-y. ADSL revenues contributed BRL296 million, or 44.8% of total data revenues. Operating expenses were down 4.9% at BRL2.39 billion. Group CAPEX in the first quarter reached BRL152.8 million, down 68% on the previous quarter, mainly due to a 96% reduction in the levels of investments in mobile telephony operations, it said.

Brazil, Brasil Telecom (BrT)