Amazonia and Telemig report results; Vivo buys 19.34%, 22.72% stakes

1 Aug 2007

Tele Norte Celular Participações (Amazonia Celular), mobile operator in the states of Amapá, Amazonas, Maranhão, Pará and Roraima in Brazil, has announced its results for the second quarter of 2007. The company’s client base reached 1,291,482 in the quarter, representing increases of 2.8% and 3.3% compared to 1Q07 and 2Q06 respectively. 2Q net additions reached 35,348 customers. Net service revenues totaled BRL112.6 million (USD60 million) in 2Q07, up 34.1% year-on-year, with data revenues totaling BRL6.0 million, down from BRL7.2 million recorded in 2Q06. Tele Norte suffered a quarterly net loss of BRL4.7 million, a 48% improvement from the year-ago quarter.

Tele Norte’s sister cellco, Telemig Celular Participações, which operates in the state of Minas Gerais, recorded 49,420 new customers in 2Q, increasing its client base to 3,545,360, an increase of 141,380 compared to the same quarter of last year. Net service revenues totaled BRL318.9 million in the quarter, 6.4% higher than the previous quarter, and 31.3% up year-on-year. Data revenues totaled BRL20.1 million in 2Q07, slightly higher than the BRL19.8 million recorded in 1Q and BRL3.8 million lower than the BRL23.9 million posted in 2Q06; the decline reflects the revision of user packages and promotions offered by the company. Quarterly net income was BRL47.7 million, up 12.1% quarter-on-quarter and up 158.0% year-on-year.

This morning, Portugal Telecom announced that Vivo Participações, its Brazilian joint venture with Telefonica, has acquired a 22.72% controlling stake in Telemig Celular Participações and a 19.34% controlling interest in Tele Norte Celular Participações, for a total of BRL1.2 billion (USD640 million). The stakes were bought from Telpart Participações, with whom PT has made an additional agreement to acquire further shares in the sister operators for BRL87 million. The deal is awaiting approval from Brazilian telecoms regulator Anatel.