CANTV profits shoot up

11 Sep 2007

Recently nationalised Venezuelan incumbent telco CANTV has published its quarterly earnings release for the three months to the end of June 2007, which shows that group net income rose by 178.3% compared to the same period of 2006, to VEB266 billion (USD124 million), as total operating revenues rose by 31.3% year-on-year to VEB2.09 trillion. Mobile, fixed line and broadband services represented 48%, 39% and 13% of total revenues in the second quarter, respectively. Local access revenues in 2Q rose 8.1% year-on-year, whilst DLD and ILD turnover was up 13.8% and 37.4%, respectively. Broadband sales increased by 32.1% to VEB267.9 billion, whilst mobile revenues (at CANTV’s wholly owned subsidiary Movilnet) climbed 32.1% on a quarter-on-quarter basis to VEB1.01 trillion. Mobile and broadband customer bases grew by 31.2% and 60.5% year-on-year, to 8.6 million and 609,000, respectively. ADSL customers accounted for the majority of broadband subscribers (590,000 at mid-2007). Local fixed telephony lines in service increased by 18.4% in twelve months to stand at more than 3.7 million at the end of 2Q07. Total CAPEX for the six months ended 30 June 2007 totalled VEB601.5 billion, a 54% increase on 1H 2006. CANTV is 86.2% state-owned as of May this year.

Venezuela, CANTV