GVT’s 1Q net loss net loss rises sharply on higher expenses

30 Apr 2007

Brazilian telecoms company Global Village Telecom (GVT) has reported a six-fold increase in net losses in the first quarter of 2007, to BRL60.2 million (USD29.6 million), up from BRL10 million in Q12006. The company attributed the rise to BRL75 million of non-recurring expenses relating to its recent IPO, as well as BRL30 million worth of costs related to interest on debt, writes BNamericas citing GVT’s chief executive Amos Genish. Excluding the effect of these expenses, net income would have been BRL14.5 million in the first quarter, he said.

Curitiba-based GVT reported net revenues of BRL215 million in the fiscal first quarter, up 25.5% compared with BRL172 million a year ago. It had over one million lines in service by the start of April, up 33.3% year-on-year. EBITDA stood at BRL74.2 million, up 38.6% from BRL53.5 million in Q12006, and the EBITDA margin climbed from 31.1% to 34.5%. CAPEX in the three months to 31 March was BRL61 million, up 81.5% y-o-y, around four-fifths of which was set aside for local access expansion projects. ‘CAPEX should grow at around the same level for the rest of this year,’ the CEO said.

Brazil, Global Village Telecom (GVT)