Net nets loss in Q2

20 Jul 2007

Brazilian pay-TV service provider Net Serviços has reported net losses of BRL179 million (USD97 million) in the three months to 30 June 2007, compared with a profit of BRL27.8 million in the same period of 2006, the company said in a statement. Net attributed the loss to higher income taxes and ‘non-recurring equalisation’ of local pay-TV company Vivax’s accounting estimates, reports BNamericas, following the approval of its acquisition of Vivax by Anatel on 16 May. Excluding the effects of this transaction, Net would have posted a BRL31 million net profit in the period, up 11% year-on-year. The pay-TV company’s revenues rose 28% to BRL698 million in the period, and consolidated EBITDA (excluding the effects of the Vivax purchase) climbed 24.3% to BRL196 million. The company’s EBITDA margin slipped by one percentage point, to 28%, and operating costs rose 30% to BRL332 million.

Net Serviços had 2.3 million pay-TV customers at the end of June, a jump of 17% on the same time a year ago, while broadband internet subscribers jumped 75% to 1.12 million. The company also counted 354,000 voice telephony customers, thanks to the net addition of 49,000 in the preceding twelve months.