CANTV posts solid 2Q results

6 Aug 2007

Venezuelan incumbent fixed line operator CANTV has reported a net profit of VEB266 billion (USD124 million) for the second quarter of 2007, up 178% year-on-year, on revenues that rose 31.3% to VEB2.09 trillion. In 2Q06 profits had fallen 16% year-on-year due to a reduction in income tax benefits and lower exchange rate gains. The telco’s wireless unit Movilnet ended June with 8.6 million mobile customers, up 31.2% in twelve months, with mobile traffic up 43% year-on-year, whilst its high speed fixed internet subscribers increased by 60.5% on 2Q06, to 609,000. Fixed lines in service stood at 3.7 million at 30 June 2007, up 18.4% compared to a year earlier, and public telephones in service grew 6.8% y-o-y to 7,438. Mobile business accounted for 48% of quarterly revenues, fixed line telephony contributed 39% and broadband represented 13%. CAPEX in the first half of 2007 was VEB602 billion, the bulk of which was spent on expanding mobile and broadband access infrastructure nationwide, with other significant investments in a next generation network (NGN) and in the expansion of the fixed line network. The company said that investment for 2H07 will be dominated by the ongoing rollout of a nationwide GSM network to operate alongside Movilnet’s CDMA infrastructure.

Venezuela, CANTV, Movilnet