Telemar (Oi) reports rising profits on lower debt, interest rates

27 Apr 2007

Brazilian fixed line operator Oi (formerly Telemar) posted net profits of BRL343 million (USD169 million) in the three months to end-March 2007, up from BRL145 million in the same period last year, the company said in a statement. 1Q2007 revenues reached BRL6.1 billion up 6.2% year-on-year, split between the group’s wireline operations (BRL5.17 billion) and wireless (BRL990 million). EBITDA was BRL1.45 billion in the first quarter, down 2.4% compared with a a year ago; the EBITA margin dipped by nearly three percentage points to 33.7%. At the end of March this year Oi had 14.3 million main lines in service, down from 14.7 million previously.

Oi’s mobile arm reported net profits of BRL45.6 million in the period under review, reversing a loss of BRL 28.2 million in Q12006. The unit’s EBITDA reached BRL183 million, up from BRL96.1 million a year ago. The EBITDA margin was 18.3%, up from 12.8% in Q12006. Oi reported 13.3 million mobile subscribers at the start of this month, up from 11.2 million at 31 March 2006. Oi’s broadband unit, Oi Velox, posted a 32% rise in subscriber numbers from 896,000 to 1.1 million in the same period.

Oi operates in 16 of the 27 Brazilian states, including Rio de Janeiro and Minas Gerais.

Brazil, Oi