Telesp Q2 net profit down 13% to USD327m

24 Jul 2007

Brazilian fixed line operator Telesp said net profits dropped 13% to BRL603 million (USD327 million) for the period April-June 2007, compared to BRL694 million in the year earlier period, despite a 4.4% rise in gross operating turnover to BRL5.32 billion. Rising demand for data services helped drive revenue growth, jumping almost 80% year-on-year from BRL402 million to BRL724 million. EBITDA was BRL1.58 billion, down from BRL1.70 billion previously.

Telesp reported strong growth at its broadband arm, which offers services under the banner Speedy. The unit reported 1.8 million subscribers at the end of June, up 31.5% y-o-y. In addition, Telesp had twelve million fixed lines in service at the end of the quarter, down 2.5% from end-2Q06.

Brazil, Telefonica Brasil (Vivo)